Pensioner tax: effect on standard of living

The youngster’s tax and its potential impact on government revenue.

By Nicole Hamer |

08:56 03 May 2013

The newest tax bracket to hit the government revenue arena: the youngster pensioner tax, pensioners whose income places them better off than even the younger members of the workforce being forced to pay taxes at the same rate of people 3/4 their age as a potential solution to solve the fiscal budget crises. Considering the income is a result of an earned privilege from years of working, hence earned entitlement for lower taxes.

 

General improvements in the standard of living for pensioners have brought disposable income to the middle class income levels, making their later years a bit more comfortable.Once given special considerations under several levels, including collecting lower income and participation in social programs, their tax rates would be extremely low or nonexistent. As reforms took effect,fewer pensioners need to rely on social programs, giving them more reportable income results in the accountable pensioner tax collected.

 

• Tax not necessarily taking into account in the shifting of expenses that pensioners have. Mortgage or rent payments, for example maybe replace with higher heating fuel or medical costs. Pensioners may not be eligible for particular social assistance programs based on pension income.

 

• Large population compared to current workforce population, viewing this disproportionate for the amount of taxable revenuebeing assessed maybe a short term solution until population corrects occurs. Will the pension tax eventually reflect this?

 

• A potential with cost of living increases eventual be nullified by the pension tax ratefor some pensioners will mean the potential stagnation of income, reversing any income and security safety nets for some pensioners.

 

• Taxing against some of the strides made for pensioners cause undue hardship for the few or the many while maintaining the common good?

 

Governments are always attempting to create new revenue sources to cover budgets and social programs but there should be a time when income and taxes should be left alone. Increase the pension tax at a time when one should be rewarded for lifetime productivity and comfortable lifestyle would be a slap in the face for any pensioner.