This is part of a plan to hit the poorest as hard as possible with benefit cuts whilst at the same time saying that if you can afford to save you need not pay tax at all.
This is part of a plan to hit the poorest as hard as possible with benefit cuts whilst at the same time saying that if you can afford to save you need not pay tax at all
This one’s in haste as I have early morning commitments, but I’ve just read of Osborne’s new pension and inheritance tax plans.
The essence is you will get tax relief on money paid into a pension plan.
If you do not draw all the pension pot in your old age it can then be left untaxed to heirs.
And inheritance tax thresholds will be increased to make sure that this tax will probably not apply to it.
In other words what Osborne is offering is double non-taxation for those able to save.
Putting that in context, this is part of a plan to hit the poorest as hard as possible with benefit cuts whilst at the same time saying that if you can afford to save you need not pay tax at all.
Leona Helmsley once said only little people pay tax. But that was in the USA. George Osborne seems intent on delivering the same option here but introducing what will potentially be a pure consumption based tax system in this country where the accumulation of wealth will be rewarded by non taxation.
At a time when we now known how harmful inequality is to societies this is a deliberate policy to increase it. And that is what is so wrong with his plans.
Richard Murphy is director of Tax Research UK
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8 Responses to “Osborne plans to increase inequality in the UK”
CGR
Allowing people to control their own pensions savings is an excellent idea.
The money is still taxed at the taxpayer’s rate of tax when it is eventually drawndown, so what’s the problem?
The tax relief on the pension saving is there to encourage people to save for their old age and quite right too.
Jan
I Did have some nice savings put away for my retirement that was until unemployment housing needs. ill health hit my children and thanks to the coalition govt new announcement it’s clear I’m never going to be comfortable again
sarntcrip
.THEY’VE TOTALLY LOST THE PLOT UKIP ARE RECKLESS IN TAKING ON THE VERY TIRED CAREER POLITICIANS THEY’VE CRITICISED
sarntcrip
WITH THE BANK OF ENGLAND REWARDING FAILING BANKS, BY FILLING THEIR COFFERS WITH QE AND KEEPING INTEREST RATES AT A VIRTUALLY NON EXISTENT LEVEL NOBODY HAS ANY REAL CONTROL ON THEIR SAVINGS BUT YES HE IS BENEFITTING THOSE WHO CAN SAVE AND PENALISING THOSE WHO CAN’T WITH CUTS
robertcp
Osborne is a caricature of an uncaring Tory. He might as well argue for the return of workhouses!