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Anyone with a memory?

Richard Murphy says:
February 26 2024 at 6:26 pm
This is fiscal drag at work

A Sunak production

Back two decades I – along with other neoliberals – insisted that the personal allowance should rise, substantially, to makeup for the fiscal drag of previous decades. We won.

The biggest opposition came from Murphy and the likes who insisted that richer people gained the greater amount of tax relief from reversing fiscal drag. So therefore don’t do it.

I really do despise those who change their tune dependent upon what is opportune.

8 thoughts on “Anyone with a memory?”

  1. With the new sate pension of £11,541.90 from April and the Personal Allowance being stuck at £12,570 it’s getting close to the point where a part of everyone’s state pension will be taxed. If the ridiculous implementation of the triple lock is not fixed this will inevitably still happen fairly soon unless Personal Allowance is triple locked too, and that’s not going to happen.

  2. @AndyF,

    The state pension is paid, 13 times a year, gross. If you have any other sources of income from (say) a work pension, then it is highly likely that that will be taxed as if the state pension was added to it. Mine is. What that means is that the nominal pension of X may be anywhere between X and 60% of X (or even less if you have pensions worth over around £100k – I wish).

  3. I think I might be ‘inconvenient truth’ on that thread! The trouble is I’ve used so many different names to tray and get around his censorship, it’s a job to remember!

  4. @Excavator Man

    Indeed, and when you have additional pension(s) the tax code on them is set by first subtracting the state pension amount from the personal allowance as no tax deduction is made from the state pension itself. The interesting effect for people with no other pension when state pension exceeds the personal allowance is that either it will need to be taxed at source or they will have to receive a tax demand or they will need to be excused the tax. All three of these options are political nightmares.

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