In his April 22 Budget Mr Darling said he will scrap generous tax breaks on pension contributions for people earnings over £150,000 a year.
The Chancellor said this would cure an ‘anomaly’ under which a quarter of all pensions tax relief goes to the top to 1.5 per cent of earners.
Instead, the relief will be gradually tapered down to the same 20 per cent rate that most people get on their pension contributions, in a move that will yield the Treasury extra revenues.
I think it\’s generally accepted in leftie circles that one of the great problems with the British economy is our lack of long term investment funds. That is right, isn\’t it?
That everything\’s short term, no one thinks to the future, it\’s profit now and damn the long term?
But on the other hand, I can\’t really think of any form of investing which is more long term than pensions investing.
So we\’re going to cure the absence of long term investment funds by taxing those who make long term investments more?
Either I\’ve misunderstood matters or there\’s a small slip in the logic in there.