UK Budget Preview 2: Are employer NICs a tax on 'working people'?

As the Chancellor rushes to try and make her sums add up, a number of tax rises are being mooted and tested out in the press in advance of the Budget. Some of these – e.g. capital gains tax and inheritance tax – were quite predictable, with Labour seemingly happy to let discussion gather pace by making pledges specifically not to raise taxes on ‘working people.’ Capital gains arise from sales of assets and so are a return on capital and not on labour; and inheritance tax is due on wealth passed from previous generations, and so not a return on the inheritor’s labour. Both clearly are not earned income for their beneficiary, and therefore – according to the Labour manifesto – fair game for tax rises.