Well-known Exeweb poster
- Aug 23, 2004
I’m beginning to think I’m the only proper ‘progressive’ on here.I'm sure the Northern working class are going to be delighted that they're paying for the social care of wealthy Southern pensioners. Why not raise income tax instead to distribute the cost more evenly? Oh wait, because it will upset the Conservative-voting pensioners and Conservative-funding landlords.
Edit: additionally you start paying NI at 9500, compared to 12500 for income tax as you said. Putting the tax on NI rather than income tax does therefore impact the lowest paid more.
Our tax system doesn’t recognise regions or class if you meet certain thresholds as regards your earnings you pay into the pot. So yes, lower earning working northerners help pay for the state pension of wealthy southern pensioners, just as lower earning southerners pay for the wealthy northerners state pension.
Unless you means test universal benefits like state pensions and don’t pay it out to everyone then I don’t see a way round it.