The Tories introduced the lifetime pension cap. Based on the value of a fund, and not just contributions, it has caused major difficulties for hospital consultants in particular. There was an obvious problem needing a solution.
The Tory solution was to abandon the cap.
That solved nothing but perpetuated a massive bias towards wealth in the pension system.
Now, Labour says it will maintain that bias.
It could have instead said it would abandon the cap and cut the rate of relief on contributions. That would have worked.
He was going to increase the taxation of public sectror pensions contribuitions, was he?
I think (and the word ‘think’ and Murphy’s utterances are uneasily juxtaposed) that what he is saying is that he would abandon the cap and remove the tax relief on higher rate taxpayers which would resolve the problem.
This is the standard of analysis you get from what is easily the most ignorant, and evil commentator extant in cyberspace today and someone who I’d ideally like airlifted into Gaza to face the current IDF bombardment.
Public sector pensions are overwhelmingly financed by the employers’ contributions that are not subject to income tax, so the limit on tax relief would only have a significant hit on the self-employed and some private sector employees.
Like a serial career burglar casing houses, the vile cvnt has another potential target for his thieving:
Michael says:
June 10 2024 at 9:23 am
I was thinking about pensions tax relief and got to wondering if the real solution is to change the internal taxation of pensions themselves.
If pensions had their own equivalent of an annual personal allowance and were taxed on the excess there would be less tax relief for very large pots because they should have much higher levels of income and capital gains.
It feels a bit like tinkering around the edges, but maybe it would work?
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Richard Murphy says:
June 10 2024 at 9:28 am
It’s a curious idea worth thinking about….
‘Pensions biased towards wealth’
How else could they be biased?
Comments asking about his own pension and how it would be affected are being deleted….
The Tories introduced the lifetime pension cap.
No they did not. Gordon Brown introduced it as part of his ‘A’ day pension reform. George Osborne cancelled the plan to increase it to compensate for inflation and reduced the cap.
@john77 Public sector pensions are overwhelmingly financed by the employers’ contributions
Public sector pensions are overwhelmingly financed by taxes paid under threat by those who generate wealth in the private sector. Those taxes are handed by Government to public sector employers who in turn pay them as “employers’ contributions”. Public sector employers and their employees generally don’t generate wealth, they feed from it. Most public sector pensions are a Ponzi scheme because they have no funds in the background.
There’s a real case for arguing that public sector employees should have their right to the State pension withdrawn, as that too has to be paid by those outside the public sector who generate wealth. So public sector employees get multiple bites of the cherry…….
Andyf said:
“Gordon Brown introduced it as part of his ‘A’ day pension reform”
Thank you, I was trying to remember who did it; thought it had more of Brown’s style.