Why would they do this? Tories are attacking pensioners!
They have raised the age at which pensions may be claimed, again and again; they have introduced changes that mean anybody currently aged 40 or below will receive less in their pension payouts; they have threatened pension-related benefits like the winter fuel payment (although they have yet to go through with that one).
Now we see that George Osborne – who would like to be a future prime minister – is using pension taxes as a source of easy profit (that’s what a “milch cow” is) – and has already creamed off more than £5 billion a year from current pensioners, with a promise of more pain to come on March 16, it seems.
This is not what we mean when we call on the government to tackle tax avoidance.
It’s time senior citizens woke up and realised they are being exploited by the party they trusted to keep them safe.
George Osborne is using pension taxes as a “milch cow” to pay off the deficit, the head of the Institute of Fiscal Studies has said.
The chancellor is expected to announce the results of a Treasury inquiry into tax on pensions in the budget on 16 March. Among the changes being considered is the replacement of variable tax relief on pension contributions with a single, flat-rate of between 25% and 33%, which would cause high earners to lose some of their rebates.
Paul Johnson, director of the leading independent thinktank the IFS, said: “The tax regime has been changed and changed again as pension savings have proved something of a milch cow for the current chancellor.
“By reducing the amount that can be put in a pension free of tax in any one year and the maximum size of the accumulated pot, he has increased tax revenues by more than £5bn a year.”
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