Lord Wigley
Main Page: Lord Wigley (Plaid Cymru - Life peer)
Baroness Penn (Con)
My Lords, my noble friend is correct that, as well as seeing record highs in prices recently, we have in recent years also seen record lows. With that came record lows of investment; that is why the Government are very careful before considering questions such as a windfall tax.
Lord Wigley (PC)
My Lords, would it not be more socially equitable if the upper cap on national insurance were removed, so that those on high incomes pay the same marginal rate as those who are earning modest incomes? Would that not be a far fairer way of doing it?
Baroness Penn (Con)
I say to the noble Lord that it is important to take the impact of national insurance and income tax together. When you do that, the combined tax rate for those earning in the lower bracket is 32% and, in the upper bracket, it is 42%. So, overall, we still have a progressive system.