Tax changes should be progressive
THERE has been some talk again of adjusting the tax breaks on pension contributions so that the better paid only get the same real benefit as everyone else, which seems fair enough to me. Most people accept the principle of “progressive taxation” except it seems when it affects them.
When the chancellor raises the tax-free threshold it is promoted on the basis of taking many people out of paying tax altogether. What it also does is give a proportionally bigger tax reduction to everyone on the higher tax rate so the better off become even better off. The higher paid are obviously very pleased with this doubly so as usually the higher tax rate threshold is increased at the same time so they get a two-fold benefit. I don’t think therefore they should get quite so upset when tax adjustments work in the opposite direction and are genuinely “progressive” A Clarke
A heron pictured by Fiona Kierton in her back garden in Hall Road, Burbage