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Budget 2011: Government to consult on NI and income tax merger

The government is to look at merging income tax and National Insurance, chancellor of the exchequer George Osborne has announced.

In today's Budget, Osborne said that operating separate taxes had 'burdened tax payers and employers for decades'.

He added that National Insurance would not be extended to pensioners.

The chancellor said the move was part of the government's drive to simplify the current taxation regime, adding that it was 'time to take a historic step' towards this goal.

The consultation is expected to take a number of years.

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