Income Tax in Relation to Social Security

Abstract

This paper falls into three parts which form a progressive study involvingI. proposals for the reform of the Income Tax system as related to personal assessments,II. consideration of the interrelation of Income Tax and Social Security,III. proposals for the co-ordination of the Income Tax and Social Security systems.Part I of this progressive study is a plea for a business-like administration of the Income Tax system. Part II examines the combined effect upon the individual of the Income Tax system and the Social Security plan proposed by Sir William Beveridge. Part III sets out to co-ordinate Income Tax and Social Security and to simplify the financial relationship between the individual and the community.

Merging National Insurance Contributions and Income Tax: Lessons of History

“…Different schemes were put forward. In a remarkable paper submitted to the Institute of Actuaries in 1943, A. T. Haynes and R. J. Kirton set out proposals for the coordination of income tax and social security which rejected the insurance principle (Haynes and Kirton ). Sir Paul Chambers, one of the principal authors of the PAYE system, tried to reconcile the need for income protection with retaining incentives to work and save (Chambers ).…”