Smell the Coffee

Why can’t these politicians and quango managers wake up and smell the coffee? The best thing to do would be to scrap the whole daft idea. 1. We are in a recession 2. Wages and incomes are under pressure 3. Those who are the main target are also the most indebted 4. Even if they weren’t it is axiomatic that they don’t have much disposable income and if their position improved the first and most natural thing they would want to do is improve their lifestyle. 5. NEST is nothing more (or less) than a tax on employment for both the employee and employer. It is bound to hold down wages as any increment will result in an increment to funding. It is so like the old Selective Employment tax that our politicians have conveniently forgotten about and which failed miserably back in the 70’s. 6. Government (ALL government) need to get honest. NI is not insurance it is a tax. People still believe that NI pays directly for their pension and health care. As Bevan said – “The secret of the National Insurance Fund is that there isn’t one”. 7. Better to encourage those that can to fund their pensions and then have a system whereby those with say liquid capital of (say) over £750,000 or a private income (from pension or wherever) of (say) £45,000 or over forfeit their State Pension. Much as the age allowance works. This should then release funds for the less well off. At the same time tax rates can be increased to enhance the State Pension. Remember that currently we pay the most parsimonious pension in G20. That should sort it and don’t forget how much you will save by scrapping all the unnecessary bureaucracy and cost of NEST with all those managers at silly salaries with their snouts in the trough. Now tell me I’m talking rubbish. QED

Posted by: Harry Katz