Government scraps pension cap

[JohnD]

Remember the trouble we had getting them to help feed the children of the poor?

Rashford demands a 'meal a day' for all school pupils in need

Footballer says his campaign to end child food poverty in England still has a ‘million miles to go’

www.theguardian.com

Conservative generosity is reserved for the old and rich.

 

[Lower]

Anybody who already has over a million in their pension fund already has quite a decent pension.

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Do many of the nurses you know have that much?

How many of them feel fit to carry on in their old age?

I shouldn't have mentioned nurses. There is a separate pension issue with them that encourages them to retire early and i forgot that when i wrote my last post.

Do you think we shouldn't incentivise highly skilled, highly paid doctors to continue working when they'd otherwise retire due to punitive pension related tax bills?

 

[JohnD]

I shouldn't have mentioned nurses. There is a separate pension issue with them that encourages them to retire early.

Do you think we shouldn't incentivise highly skilled, highly paid doctors to continue working when they'd otherwise retire due to punitive pension related tax bills?

"Doctors" is a figleaf to try to gain public support for the Tory policy of enriching the rich.

@motorbiking also tried it.

 

[IT Minion]

The consultant doctor aspect is a red herring. Their contracts require them to pay into their pensions and so get taxed on it. Their contracts could be modified to give them the option of how to take it.

Then they just lose the incentive to pay into a pension that we give everyone who isn't a bloody millionaire.

 

[Lower]

"Doctors" is a figleaf to try to gain public support for the Tory policy of enriching the rich.

@motorbiking also tried it.

You choose not to answer the question though.

 

[Lower]

The consultant doctor aspect is a red herring. Their contracts require them to pay into their pensions and so get taxed on it. Their contracts could be modified to give them the option of how to take it.

Then they just lose the incentive to pay into a pension that we give everyone who isn't a bloody millionaire.

Or they could be encouraged to continue working with the same on going pension contributions. Which is exactly what they government has done.

The whole point of this is to incentivise them to continue working and not retire early. The key word being 'incentivise'.

 

[JohnD]

Do you think we shouldn't incentivise highly skilled, highly paid doctors to continue working when they'd otherwise retire due to punitive pension related tax bills?

This is not a measure targeted at doctors, so that is a red herring.

Taxes are not punishments, so that is a red herring.

If there is a defect in the NHS contract terms for pension contributions, it should be corrected.

It is not a justification for enriching the rich.

There is no particular relationship between being rich and working hard or being skilled, so that is another red herring.

Tax perks are not awarded according to diligence, morality or public benefit. This particular one has been given exclusively to people who already have a large pension fund and a large income. It also provides a path for them to avoid inheritance tax on another million or more.

 

[IT Minion]

Or they could be encouraged to continue working with the same on going pension contributions. Which is exactly what they government has done.

The whole point of this is to incentivise them to continue working and not retire early. The key word being 'incentivise'.

The pension tax break is to encourage people to pay into pension pots. There was a cap so we didn't waste time trying to incentivise multi millionaires to dodge tax.

We've now scrapped that and given very rich people another way to avoid tax. That is a crude measure that's going to cut something like £4 billion pounds of tax. That's the same as giving the NHS a 10% pay rise, which might be more effective in getting the NHS staffing issues under control.

 

[JohnD]

Will none of our multimillionaire plumbers step forward to support this giveaway?

 

[motorbiking]

If it wasn’t for their already tax efficient final salary pensions. It would be hard working tube drivers who’d also be benefiting.

I know the lefties love a hard working train driver.

 

[JohnD]

If it wasn’t for their already tax efficient final salary pensions. It would be hard working tube drivers who’d also be benefiting.

I know the lefties love a hard working train driver.

That's an interesting claim. Is it only tube drivers who get a final salary pension?

What is a typical pension for a retired tube driver?

 

[JP_]

Do you know people earning over £x get taxed at y%? Quite right I say, tax 'em MORE!!!
(fast forward a decade, this person is now earning £x)
Do you know people earning over £x get taxed at y%? It's an absolute DISGRACE!!!

I've never heard anybody moaning about having to pay too much tax. Some dodge it, and usually get caught, but most are happy to pay it.

 

[JohnD]

I've never heard anybody moaning about having to pay too much tax. Some dodge it, and usually get caught, but most are happy to pay it.

Quite right.

Paying a lot of income tax comes as a result of having a big income, which is widely considered to be a good thing.

Of course, there are always a few slimy sociopaths wanting to slither out of paying their share.

 

[motorbiking]

That's an interesting claim. Is it only tube drivers who get a final salary pension?

What is a typical pension for a retired tube driver?

How much do you think £1m buys converted to a final salary index linked pension with spousal guarantee?

 

[Lower]

This is not a measure targeted at doctors, so that is a red herring.

Taxes are not punishments, so that is a red herring.

If there is a defect in the NHS contract terms for pension contributions, it should be corrected.

It is not a justification for enriching the rich.

There is no particular relationship between being rich and working hard or being skilled, so that is another red herring.

Tax perks are not awarded according to diligence, morality or public benefit. This particular one has been given exclusively to people who already have a large pension fund and a large income. It also provides a path for them to avoid inheritance tax on another million or more.

I disagree. One of the main drivers of this policy is doctors, so absolutely not a red herring.

As for there being no relationship between being rich and being skilled, that is an either naive or poorly thought through concept. Skills and ability are some of the key ways someone can better themselves financially. Its specifically why specialist medical consultants earn high wages. It takes a long time to get to that level of skill, knowledge and ability and there just aren't that many people with the skills, ability and willingness to do that particular job, hence the salary's they attract. If we want to continue to attract people of that calibre, it would be naive to ignore income and pension savings.

Secondly, tax perks are absolutely awarded specifically for public benefit. Tax perks are used to incentivise the population in specific ways, eg to put money into a pension to reduce the demand on the state, benefit the lowest paid by making sure they pay no or minimal tax, encourage certain wage level earners to aspire to earn more etc etc.