ABSTRACT
In practice and for the time being the balance of advantage lies with the methods chosen by the Coalition The higher benefits to be provided ought to be matched by higher contributions, to help remind every citizen that social security has its price which he must share. And from the Government's point of view contributions are a customary and convenient form of taxation with a high degree of stability. And not later than five years after the scheme comes into force the Government should be required to institute a comprehensive review of its financial workings and its relations with income tax. If it is felt important to tax employers as such specifically for social insurance, this could be better done through income tax or by a tax on profits. The ultimate aim, which may require a generation to attain, should be to fuse social insurance and income tax as far as possible.
