New “Kiddie Tax” will help support their grandparents’ pensions

1st April 2017 by RetireEasy





Boy with candy 1

A leaked government document has revealed that a working party has been set up to study the possible introduction of taxing 5-15 year olds in order to supplement the incomes of poorer pensioners.

The document reveals that children in this age group receive, on average, £10 weekly pocket money – which the working party says is more than many pensioners are left with to spend after paying their heating and housing costs.

The tax would be aimed at those receiving above £5 a week. The estimates are that, at a 20% rate above that threshold, the new “Kiddie Tax” would raise around £80 million a year.

This funding would be ring-fenced to supplement the incomes of Britain’s poorest pensioners.

The move has been developed in conjunction with the parliamentary group looking to reduce the sugar intake of younger people: a large proportion of children’s pocket money is spent on sweets and soft drinks, and the new tax would act as a curb on that spending.

A member of the working group, speaking off the record, said the thinking was that children normally do no work for this income and they should shoulder some of the burden of supporting the older generation who have done so much to make the world a wonderful place for them to grow up in.

“It has always been accepted that younger generations should, through taxation, contribute to the costs of pensions for older people. This is simply an extension of that.

“Britain’s younger people have never had it so good, and this is simply a way of cascading that wealth back up the generations.”

The anonymous civil servant from the Treasury who proposed the new tax plan said that, in addition to the financial inequality, children can be a right pain in restaurants and have ruined the atmosphere in pubs for many older people.

“Also, school holidays at Easter, Christmas and in the summer mean that retirees have to pay exorbitant prices for flights and hotels at these times of year, which is clearly unfair.”

The British Dental Association has broadly welcomed the move, saying many children’s teeth will be saved as a result of the proposals.

However, a spokesperson for The British Toy and Hobby Association, which represents the interests of the UK’s toy industry, described it as “A dark day for the nation’s doll and teddy bear makers. Our industry is already struggling with the predicted fall-out from Brexit, and this could be the final nail in many businesses’ coffin.”

 



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