Thu Mar 22, 2012, 07:09 PM
dipsydoodle (42,025 posts)
"Granny tax" is hard sell for Conservatives
Reuters) - The ruling Conservatives were pilloried on Thursday as a party pandering to millionaires and slapping a "Granny tax" on pensioners in a budget they defended as a spur to growth.
Chancellor George Osborne, in announcing a freeze on tax allowances for pensioners in Wednesday's budget, said this would be offset by a rise in pensions. But the Granny tax epithet played too easily to media, friend and foe alike, and to a public weary of austerity measures.
The "nasty party" label Prime Minister David Cameron fought to shed after the Conservatives' 13 years in opposition until 2010 loomed large again for sceptics who also seized on a cut in the top rate of income tax to 45 percent from 50.
"Osborne picks the pockets of pensioners" said the right-leaning Daily Mail on its front page.
See here for Mail :
Granny tax backlash: Fury as full scale of Chancellor's raid on pensioners emerges
The full extent of George Osborne’s stealth tax raid on pensioners was laid bare yesterday.
Around 700,000 people turning 65 next year will be hit the hardest – losing £323 annually with the end of age-related income allowances.
In all, the ‘granny tax’ will take £3.5billion from the pockets of more than 4.4million pensioners. Senior Tories have denounced it privately as the Chancellor’s biggest blunder.
Read more: http://www.dailymail.co.uk/news/article-2118993/Granny-tax-backlash-Fury-scale-Chancellors-raid-pensioners-emerges.html#ixzz1ptEx1zhn
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"Granny tax" is hard sell for Conservatives (Original post)
Response to dipsydoodle (Original post)
Thu Mar 22, 2012, 08:41 PM
fedsron2us (2,851 posts)
1. Rules Number 1,2,3,4,5,6,7,8,9 in Politics is don't piss on your core voters
Osborne royally lashed the ball into the Tory party's own net yesterday and then ran around celebrating. I gather Conservatives preparing to go on the doorsteps in the run up to the local elections are absolutely furious. At the very least he should have waited until the personal Allowance had reached £10,000 before abolishing the age allowance so that the hit was less obvious.
Another clunker in the Budget was the fact that that he has reduced the 40% tax threshold so that people earnings in excess of £41450 from 2013 will pay 40% income tax. This basically reduces the value of the increased tax allowance to about £43 to people earning above this amount. I would have more sympathy with Osborne if he had some sort of coherent argument but it is ludicrous to suggest that those earning above £ 150,000 will be discouraged from work by a 50% tax band but then somehow to believe that the same logic does not apply to those extra million taxpayers now swept into the 40% tax band by the lower threshold. Either he is intellectually challenged or simply dishonest. I suspect the latter