Londonlisa2001
Mel Nurse
- Joined
- Jul 19, 2020
- Messages
- 2,002
- Reaction score
- 1,075
Take one of the benefits that isn’t part of taxable income (some benefits are actually taxable, like Jobseeker’s Allowance but ignore that for now), like Universal credit.To raise revenue. Why is it fair to tax pensions when they've been accrued over a lifetime of saving (from after tax funds)?
It’s based on need. And comes from the government. So what you suggest is that the government gives someone universal credit, takes some of it back in taxes and then has to increase the amount of universal credit given as it no longer covers need. So the net amount someone receives is the same as they get now but now there’s a bigger starting amount and tax paid on that. No extra revenue, lots of admin and extra costs.
Sounds like a plan.