Granny Tax Hysteria

Pennywise

vax2002 wrote: »

They were taxed when they earned it, they were taxed on the interest on it and then they get taxed again when it is paid back to them.
Just how many time do these greedy pigs want to tax the same money ?

Someone with just state pension will still be below the personal allowance so won't pay tax on it.

Those who have occupational or personal pensions large enough to push them into tax, HAVN'T "paid tax on it" as they'd have received tax relief on their contributions. So it's only right that they pay tax on it when they come to claim it. Pension schemes wouldn't have paid tax on the interest earned on monies invested so no they weren't taxed on the interest either.

ukcarper

Mr_Mumble wrote: »

From the FT:

The FT are wrong on one point, it isn't just the rightwing papers! Every national newspaper, except for the Murdoch duo (who still mention it on the front page) are leading with age-related allowances and their freezing, for existing, and withdrawal, for future, pensioners.

Looking at the actual numbers anyone a few years from retirement should be happy. Page 50 of the budget report shows HM Treasury expects the age related allowance changes will bring in £3.3bn to the exchequer over the next five years. However, the more rapid increase in personal allowance will more than offset the pensioner change and cost the Treasury £13.7bn over the same time period. This is a net win for most workers.

But my query is this: what happened to the old-school medias demand for "fairness"? Why should a lot of affluent baby boomer retirees rich on their defined benefit pensions get taxed less on the same amount of income compared to the younger worker bees who will be getting contribution based pensions?

An uncharitable sort may say the papers are cynically siding with their myopic core demographic. I'm uncharitable.

It will effect me but I don’t really see why a pensioner should have a bigger allowance than a younger person. But why do you still dig at babyboomers the majority of which are not pensioners.

Mind you it would have been better if the money save was directed at young people rather than the very rich.

chewmylegoff

vax2002 wrote: »

They were taxed when they earned it, they were taxed on the interest on it and then they get taxed again when it is paid back to them.
Just how many time do these greedy pigs want to tax the same money ?

they were not taxed when they earned it, because they paid it into a pension scheme, and received tax relief for doing so. so they are only being taxed once, on the income that they receive from the tax free investments that they made.

so in answer, the greedy pigs want to tax people once.

Graham_Devon

Just listening to a couple of boomers on the radio right now.

I think to say they are narked at standing still would be an understatement.

"We have worked all of our lives, to get hit with this tax, it's outrageous". The other goes on to call it "an insult on the frail".

The whole theory appears to be that they have paid their taxes all their lives and therefore should be immune from being "hit". At least that's my take on it, as the "worked all our lives" seems to be running through all the mindsets.

Boomers not gaining, but rather, standing still? Hideous.

ukcarper

Graham_Devon wrote: »

Just listening to a couple of boomers on the radio right now.

I think to say they are narked at standing still would be an understatement.

"We have worked all of our lives, to get hit with this tax, it's outrageous". The other goes on to call it "an insult on the frail".

The whole theory appears to be that they have paid their taxes all their lives and therefore should be immune from being "hit". At least that's my take on it, as the "worked all our lives" seems to be running through all the mindsets.

Boomers not gaining, but rather, standing still? Hideous.

Why do you say boomers the oldest boomer will now be 67 while the youngest will be 48, do you know how old the people who were complaining are?

ukcarper

chewmylegoff wrote: »

@2010 Given that the treasury's own stats indicate that the 50% tax rate is basically raising no revenue whatsoever, and no money is being taken off pensioners at all, your comment amounts to a media soundbite. There is no point having certain tax bands for ideological reason when they are counter productive in practice.

Anyway, pensioners will moan about this, and then vote Tory at the next election, as usual.

If you believe people who are currently avoiding paying the 50% tax will willingly pay the 45% I think you will believe anything.

Also I don’t think all pensioners vote Tory.

gailey_2

Im not ageist but feel this is totally fair they shouldent have preferential tax rates as

they have fuel allowance-regardless of their income they could be millionairees.
correct me im in wrong but dont think the free bus pass or tv licences are means tested everyone gets.

dident they increase the state pension in last spending reveiw?

a lot of pensioners I know are very well off.

It seemed fair to take away clild beneft but not fuel allowance gets me annoyed.

see the papers are leading with this and very dissapointed .

Graham_Devon

ukcarper wrote: »

Why do you say boomers the oldest boomer will now be 67 while the youngest will be 48, do you know how old the people who were complaining are?

Yes, 65 and 63. They stated so.

It wasn't dorothy in her 90's ringing in.

StevieJ

gailey wrote: »

Im not ageist but feel this is totally fair they shouldent have preferential tax rates as
?

a lot of pensioners I know are very well off.

It seemed fair to take away clild beneft but not fuel allowance gets me annoyed.

see the papers are leading with this and very dissapointed .

I agree it is wrong for a couple with a pension of £118k to claim fuel allowance but it is also wrong that a working couple on £118k should be claiming child benefit.

ruggedtoast

How much are they losing? I heard it was about £80 quid a year.

We just lost five hundred nicker a year from the tax credits being changed. And every year inflation wipes out another chunk of my real salary.

80 quid sounds pretty good to me.