TAX ON FULL STATE PENSION APRIL 2027

MACKEM99

QrizB said:

BlackKnightMonty said:

Important jobs no doubt. This doesn’t absolve the fact they are net economic drainers. That’s just a statistical fact.

That 53.3% receive more from the State than they contribute is a fact.

Those 53.3% being "net economic drainers" isn't a fact, it's opinion - and a rather unpleasant one, in my opinion.

We have a redistributive system, intended to shift assets from the rich to the poor. Those 53.3% are a sign of the system working.

Now please can someone close this thread? I've reported it three or four times  already for being overly political and non-moneysaving ...

Dont read it then.

ClashCityRocker1

MACKEM99 said:

ClashCityRocker1 said:

BlackKnightMonty said:

MK62 said:

BlackKnightMonty said:

MK62 said:

ewaste said:

BlackKnightMonty said:

I think the SP will have to be taken away as it is unsustainable.

Take too much tax from high earners and they change their behaviour. They migrate to other more welcoming countries, or they cut back on hours so they aren’t in a tax crunching zone like the £100k trap.

If we want growth we need to encourage the most productive to want to work hard. Make sure they are rewarded. That’s the top 10% of income earners. The big economic hitters. The ones who contribute 60.3% of all the income tax paid in the UK. The 10% who alone, contribute 16.2% of the entire tax receipts received by HMG. £184.525bn / £1,132bn)

https://commonslibrary.parliament.uk/research-briefings/cbp-8513/

..........Yes a small minority contribute a majority of tax receipts yet wealth and income inequality is plainly visible in society and continuing to worsen......

The last ONS Wealth and Assets survey estimated that of the total wealth in the UK, around half is held by the top 10%.......the top 50% hold 94%, while the bottom half hold just 6%.........the bottom 10% hold practically zero.....

Quite right too. Why should the bottom half hold any wealth when they are a net economic drain.

Have you ever thought that they might be a "net economic drain" precisely because they have no wealth? 

They are a net economic drain because they take more than they give.

53.3% of all UK households.

A snapshot in time. Retired or sick people might not be paying tax now, but they might have done, and they might again. They might be contributing in non-cash terms, volunteering, caring, playing guitar in the park, who knows? We might need to balance the books, but not everything is about money. 

Also people need more at different stages of life - so when kids are young and they are not yet at peak earning fro example, or later in life when they get frail or ill

The other big drain on everybody is housing costs - not sure what can be done easily to balance that except build a lot of houses/flats.

If somebody is a multi-site landlord and coining it in they might well be paying more tax than they receive but they might well also be squirrelling away wealth and not doing anything useful except putting rent up every 12 months.

And providing housing.

That is true. One of the major changes since the 1970s is the lack of social housing provided by the council - this has been picked up by Housing Associations and private landlords. 

Build a lot of social housing and the number of private landlords will decline. and the rents will stop racing up!