I don't think it's dodging tax, it's certainly not even equivalent or even comparable to something like tax avoidance schemes. There were huge numbers of people getting this allowance that didn't need it. That was dumb. Even more dumb even criminal is punishing those that did by removing it from those most in need. I'm of the view nobody in this country should be cold, hungry, without a roof over their head, a proper education and a healthcare system fit for purpose. I take the view that it isn't that we can't afford these things, we choose not to. The usual line that we can't afford or have no money is generally over simplified claptrap. Everyone knows where the money is, it's tied up in the trickle down economics that doesn't trickle down anywhere but flows outside the country.
Contrary to what you might think from my posts, I'm generally in favour of a larger state/higher taxes for better services and welfare, I believe the state should be there to support anyone in real need and down on their luck and I'd be first in line to pay my share towards it.
I just don't think an idea like this is the right way to achieve it, and I think there are way better targets to increase tax take. These ideas are blunt instruments that lump people together that are not the same. A pensioner that can't afford to heat their house is not the same as one that uses the money towards a holiday. Someone that earns 60k putting 5% a month into a pension isn't the same as someone who earns 150k and puts £60K a year into their pension to avoid tax and even worse inheritance tax. I just feel things are more nuanced than that.
I should add even further I'm not even arguing from my own position. I am fortunate and lucky, I will be fine. It just grinds my gears when we are chasing the wrong (IMO) targets and are essentially telling people on 20% tax thresholds that it's the people on 40% that are the problem. They're not.
It's a legal tax dodge, but still a tax dodge. The main reason 40% payers pay into a pension is not to save, it's to doge tax. They can save anywhere, but chose the way which doges tax the best.
Yeah, we do need to shut down the tax avoidance schemes, there are plenty worse than the pension system.
My main view is that people who have more, should get less relief, and the difference then goes to those who need it most. 100% agree nobody should be choosing heat or eat etc, should have a roof and healthcare etc. We do chose not to afford these things, the public chose that by voting in Tories 2/3rds of the time, and when Labour get in they're just putting out fires.
Sometimes it's a bit difficult though as you can have two people on the same wage all their life and one could be responsible and one the complete opposite, and in that case it's a bit unfair for the responsible one to bail out the other.
I don't think you don't want a fair system, not in the slightest (y) I think you're more on about those just going into the higher band and maybe at an older age. The thing is, those doing that when old have been around at the time of the property booms, so most have gained in other areas. Most higher rate payers now will have a mortgage or fully own a house I think.
Another problem is there are more in that 40% band now, and it doesn't go as far since the bands have not increased in line with inflation. Effectively every year they keep the bands the same, it's actually more tax everyone is paying, they should be going up each year to keep parity, which would take a lot out of that band.
Totally agree that those on more can put a much higher percentage in, as most have similar fixed costs. Like you say a 60k earner can probably afford 5-10%, but a 150k earner can chuck 50% in there if they really wanted to, they don't need the Ferrari, a BMW would be more than good enough.
Yeah, exactly, same here, I'm actually arguing against my own position massively. Problem is before my generation, the older and richer people get, the tighter/ more Tory they got, for me and my generation the opposite is more the case. This doesn't solve that the older folk have nearly all of the stored wealth though.
