It understates the true cost of pension reliefs because tax paid by pensioners is offset against it and there is no economic justification for that.
We generally think that it’s a good idea that people save for their old age. We also think that income should be taxed only the once.
So, save from, tax free income, pay tax when you take the income later. Seems perfectly reasonable.
And if you were to abolish the tax free bit then you should really lower the tax rate at the other end.
All of which seems an economic justification really, doesn’t it?
The rest of it is the old MOAR TAX argument.
Richard Murphy says:
December 15 2016 at 9:39 am
I am not expecting many replies
And it seems the press is not interested
Not sure why
I wonder too…..