Over 65 year olds to pay NI?

chewmylegoff

grizzly1911 wrote: »

I wonder what sort of income a third rate of VAT on real luxuries could generate?

under EU law, we cannot introduce another rate of VAT.

we are required to have a 'standard rate' of at least 15% and then are allowed up to 2 discount rates, which we already have (0%, 5%).

i don't think we could increase 0% rate to 5%, 5% to 20% and then shift standard rate up from 20% to, say, 50% and use it for luxuries, because then it would't be a standard rate any more, it would be a luxury rate, which i expect would fall foul of the way the VAT directive is written.

nicko33

grizzly1911 wrote: »

I wonder what sort of income a third rate of VAT on real luxuries could generate?

Maybe we could call it "duty" and put it on luxuries like alcohol and cigarettes, and other things like fuel, flying, insurance and "stamps"

fyi
https://www.uktradeinfo.com/Statistics/Pages/TaxAndDutybulletins.aspx

if I read it right it looks like the duty take is about 10 and 9.5 billiion per year for alcohol and tobacco

grizzly1911

nicko33 wrote: »

Maybe we could call it "duty" and put it on luxuries like alcohol and cigarettes, and other things like fuel, flying, insurance and "stamps"

fyi
https://www.uktradeinfo.com/Statistics/Pages/TaxAndDutybulletins.aspx

if I read it right it looks like the duty take is about 10 and 9.5 billiion per year for alcohol and tobacco

Or VAT on chocolate, shampoo, juice, bleach, fabric conditioner, hand wash, cotton wool, crisps and pop. in fact 15%, by amount, of my last family "food" bill.

Thinking more 40" plus flat screens, smart things,cars over a certain value/size, yachts,gaming machines and games, sky/virgin, branded gear, flying for pleasure, gambling, premiership football.;)

BobQ

Graham_Devon wrote: »

Been described as an attack on the pensioner....

I actually think this is a good idea. Not so sure about the holiday aspect for the young though, I'm not quite sure what that achieves. Should be just extra taxation in my view.

Well if you are talking about people with large occupational pensions who carry on working for the enjoyment of it or to keep their mind active, I would agree.

It may be viewed as ageist but I think anyone who keeps working when they could retire and do vulantary work under the Cameron Big Society should. They are blocking opportunities for the young and so any incentive to retire should be encouraged.

That said if you have someone who is existing on a basic state pension and wants to maintain their standard of living by working longer I think this is unfair.

Not sure about the holiday either. The incentive might be more job opportunities.

A._Badger

Just when we thought we'd got rid of Labour and its deluded social engineering schemes.....

Thrugelmir

StevieJ wrote: »

Yes they would be wary of including NI on pension income, Gordon Brown is still getting a slating for his 'raid on pension funds'

Not forgetting his pledge not to raise income tax.

Then raising NI instead.

grizzly1911

Thrugelmir wrote: »

Not forgetting his pledge not to raise income tax.

Then raising NI instead.

No different to the Thatcher years when we had a few years of 1% off Income Tax replaced by 1% on NI so they could be seen to honour their pledge on tax reduction.

System

BobQ wrote: »

They are blocking opportunities for the young and so any incentive to retire should be encouraged.

Or you could turn that the other way round and say that young people taking jobs are blocking opportunities for the elderly.

If your view of how the economy works is that anybody taking a job is blocking an opportunity for someone else, then any sub-set of society is "blocking" another's opportunity.
Red-headed people are taking jobs from blonds, right-handers are taking jobs from left handers.
Immigrants are taking jobs from natives, or vice versa.

It all just depends which group you belong to and what your prejudices are.

seven-day-weekend

I think that everyone who works and earns enough should pay NI, whatever their age. Not if your only income is from Pensions though -only if you are employed or self-employed.

(I'm a semi-retired Pensioner Baby Boomer:) )

StevieJ

Clifford_Pope wrote: »

It all just depends which group you belong to and what your prejudices are.

His point was aimed at those with big fat pensions who carry on working past 65 when they don't need to.