“Granny tax” should be welcomed
19 April 2012
SUGGESTED
Labour Market
Press Release
Transport
The IEA responds to the 'granny tax'
Commenting ahead of today’s vote on the so-called “granny tax”, Prof. Philip Booth, Editorial Director at the Institute of Economic Affairs, said:
”Removing the age allowance is well overdue. The move is to be welcomed as it helps simplify the tax system – especially as those allowances are withdrawn from older people on higher earnings through a complex process. Indeed, Osborne should go further and withdraw the complex married couples allowance from older people who are the only group in society who receive such an allowance. However, Osborne deserves the strongest criticism for the way in which the move was announced. People will lose out from this change and the electorate would be more forgiving if the government was direct with them about such matters rather than implying that the abolition was merely a technical change to tidy up the tax system.”
Notes to editors
To arrange an interview with an IEA spokesperson, please contact Stephanie Lis, Director of Communications: 020 7799 8909, slis@iea.org.uk
The IEA advocated abolishing the allowance in a report last year: Sharing the burden – How the older generation should suffer its share of the cuts
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
”Removing the age allowance is well overdue. The move is to be welcomed as it helps simplify the tax system – especially as those allowances are withdrawn from older people on higher earnings through a complex process. Indeed, Osborne should go further and withdraw the complex married couples allowance from older people who are the only group in society who receive such an allowance. However, Osborne deserves the strongest criticism for the way in which the move was announced. People will lose out from this change and the electorate would be more forgiving if the government was direct with them about such matters rather than implying that the abolition was merely a technical change to tidy up the tax system.”
Notes to editors
To arrange an interview with an IEA spokesperson, please contact Stephanie Lis, Director of Communications: 020 7799 8909, slis@iea.org.uk
The IEA advocated abolishing the allowance in a report last year: Sharing the burden – How the older generation should suffer its share of the cuts
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
SHARE
