So, life news now. So, we're looking at the potential report that we've got a brace for
another tax grab for our pensions. So, 15 billion tax grab. I mean, the whole principle
is that we have to work in some manner, but it should be that the more you work, the more
you take home. And it shouldn't be the more you work, you reach certain points and you
return what's given to you for one thing and you reach the bracket and then you get massive
heavily penalized. I mean, in the past, I've looked at it and calculated that a week or
two, it wasn't any point working because of the amount of tax that was clawed back. So,
Rachel Reeves could raid the pensions of high earners by acting lucrative. Well, I mean,
they've been going on for some time and I would have thought that this should also impact
politicians, but I don't think it will because a politician on their sort of salary gets
a defined benefit pension and they get credited by the employer by 29% plus. So, this is something
that Wall Street bankers want. So, Goldman Sachs said that the Chancellor will need to
raise taxes by at least 15 to 20 billion in October budget with pensions likely to be
a huge target. Now, this is spending really to pay off or buy the unions. So, we've started
with a number of them and then we would need the extra costs for all of them. Where everybody
else is sort of tightening their belt, streamlining, removing waste, a lot of all of the companies,
I will call them all the government departments just take money and spend it up to the level.
There's no element of streamlining, reducing cost, automating, finding different ways of
doing things to cut cost, make it easier on the patient or the serf as I like to call
us or any other individual. So, instead of having variable tax rates above 20, we'll
just have 20%. So, it means that the amount of money that can be put into a pension which
is most in part not that great because of the high fees introduced, the poor products
that you'll usually run by these pension funds that are linked to companies because normally
they get the free or very, very cheap companies to actually allow employees to invest their
money and after all that you get a big pot and then you get taxed or you might lose half
of it in a big crash and you still get taxed, you still get penalized of having sort of
if you go over certain thresholds you're taxed. So, it says here, it said the small measure
small measure about people's future and livelihoods, what will probably happen is that people will
find different ways because the standard is to work for an employer and not yourself to
earn the money and then once they have major problems they get rid of you, once they go
away they rehire rather than of the past there's quite a lot of streamlining to say well we'll
hire you because you've got all the knowledge and experience and if it is a bit of a problem
the money that we've made or that you have made will set aside to continually employ
you from the good times and the bad. Pensions tax relief is known to be an area that Ms
Reeves as well as other chancellors have considered cutting to raise revenue. She wrote in an
article in 2016 that a flat rate of pensions tax relief of 33% would be a welcome boost
for basic rate taxpayers and a cut in the savings subsidy for higher earners. Sir Keir
Stammer has already admitted that the budget will be painful. In a statement last month
Labour ruled out increasing taxes on working people. Well, we can probably find out what
working people in brackets means. It's either somebody on less than £40,000 or less than
£20,000 or maybe anybody earning less than the average. So during the election which
is generally thought to preclude rises in income tax and national insurance. So there's
a graph, personal thresholds compared to pensions incomes. So you've got income tax threshold
and new state pension. So to address the 22 billion bill the bank said that the Chancellor
would likely scrap certain inheritance tax reliefs, reform capital gains tax and auto
tax relief on pensions contributions. Well, I mean the capital gains tax is probably one
where they pay a smaller amount than income tax. So that's probably right. I mean inheritance
tax relief you probably most people after this will just sink all of their money in
their property and they'd want a mechanism for it to pass on to their loved ones without
being hammered. I mean we should really have a reasonable ceiling like five or ten million
and make the relevant charges on people on that at the respective percentage rather than
you've worked all your life, you've had it taxed, you have it taxed again and then you
have it taxed again and then when you die you have a further tax and you have a tax
on the dead as well. Save is currently enjoyed 20% tax relief on pensions contributions with
an extra 20% available for higher earners. Well, why not? I mean the thing is that that
money is used to sustain and prop up the number of flourishing small, medium and large companies
as well as to keep the oil of the financial system working. I mean the majority of pension
funds companies are forced to buy government bonds to keep the oils grist. So they're not
going to gain many favours from these particular individuals and it's going to gum up the work
somewhat because there's going to be an enormous amount of money that isn't coming in and
I think a lot of the millennials at the moment are saying, well, I'm not going to put in
into a pension all but the minimum and I'm just going to spend it on experiences and
when I'm older I'm just going to say, well, I haven't got anything, I haven't got a house
because I can't afford it or it's probably better to rent in the long term because of
the movability. So hello, this is Mr. A, you've got to look after me, you've got to find me
a place to live, give me meals, etc. Raising capital gains taxes to be equal with income
tax will generate 1.5 billion in additional revenue for this sector. Scrapping inheritance
tax relief on estates worth under 325 will raise 1.8 billion. So they're just going to
tax everybody. In an interview with the Sunday Times in 2016, Ms. Reeve was asked which aspect
of the tax system she would change and said, pensions tax. I would make it fairer. Well,
there's fairer and there's a way of incentivising people to actually get more well-paid jobs
because a lot of these jobs are very, very stressful. You spend 40, 50, 60 hours a week
in them and most people would rather want the easy thing. People will just sit back
and say, well, I'll just do as much as possible so I get my relevant trinkets and holidays
and avocado on toast and then the state can look after me rather than saving in your long
term. I mean, they've tried to get everybody onto a pension and it's usually 3% for the
individual and 3% on the company, which is way away from what you need in a final pension
and with inflation being rampant, you probably can only have 5, 10 years of money and you'll
be knocking on the state to help you out. So she wrote in the Times eight years ago
that the current tax relief system was an unjust and ill-judged use of the nation's
constrained finances. Well, we have had years of not creating the correct IT infrastructure
as well as having a different method of communication, which would save all of the relevant different
departments an enormous amount of money. Currently, all of the IT systems or what I've seen and
what interaction I've had is not fit for purpose. So we're talking about a flat rate of 33%.
So I suppose that'll be quite good because on the one hand, you would lose 7% if you're
a higher tax earner, but then it will swell the coffers and swell the financial services
then we're going at 333%. So we would boost the pension part of someone an average wage
by up to 15,000 pounds over the working life. It would be a simpler fairer and an important
step towards boosting retirement savings. This would be a welcome boost for basic rate
tax payers and a cut in the savings subsidy for higher earners while still rewarding savings.
Tax relief could be rebranded as a government-backed savings scheme. For every £2 that Save has
put towards their pension, the government would contribute another £1, a huge incentive
to Save for everyone. Now we've got to look at the back door of whether now or in the
future they will tax you more when you take your pension out. I mean there's a side note
here, former Chancellor Rishi Sunak and George Osborne are among those to have reportedly
considered a flat rate pension tax relief. Now, I mean on the face of it, it is fair,
but the people earning more are actually subsidising. So thank you very much for listening to this
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