Taxing State Pension

[El Cid]

1 hour ago, crookesey said:

Who said anything about the system being fair? 

Pensioners pay less tax than ordinary people because they do not pay national insurance.

 

Introduced by the National Insurance Act 1911 and expanded by the Labour government in 1948, the system has been subjected to numerous amendments in succeeding years. Initially, it was a contributory form of insurance against illness and unemployment, and eventually provided retirement pensions and other benefits.

 

Pensioners get illnesses more than most, yet they dont pay NI?

Around 10% of adults have never worked and can receive the state pension.

 

The personal allowance needs to increase, it helps the wealthy if allowances remain static.

[FIRETHORN1]

As far as I'm concerned, the state pension shouldn't be taxed at all. If you've worked all your life and paid your full NI and taxes all your life, you should get a state pension that is, at the very least, the same amount as the "minimum wage". I also believe that the personal tax threshold should be raised to £2Ok - and if your income, from either wages or pensions, is less than £2Ok, you shouldn't be taxed at all. To make up the shortfall, I would increase the top rate tax level to 50%  for anyone earning over £80k per year.... & to 60% for anyone earning over £200K per year.

On the other hand, I wouldn't give a state pension at all to those people who had never worked and had never contributed to society by paying taxes or NI . To those people who had never worked or contributed. I would keep them on subsistence level benefits - enough to keep them in basic food and pay their day to day bills - but certainly not enough to lead the sort of luxury lifestyles that many of them currently lead -  like running cars, having foreign holidays,  eating out, etc. etc  when the people who worked and kept them on benefits all their lives can't afford that kind of luxurious lifestyle  are living  in much worse poverty than those who never worked at all!