Rachel Reeves Plan: State Pensioners Avoid Income Tax

Rachel Reeves unveils plan to exempt state pensioners from income tax, addressing the issue of the full new state pension surpassing the income tax threshold by April 2027. The plan involves a simple workaround, ensuring pensioners wont owe any tax, even as the state pension increases due to the triple lock. This move, similar to the Triple Lock Plus proposal, could potentially lead to workers paying more tax than pensioners, helping fund higher benefit payments. It also reverses the granny tax and offers softer treatment for older taxpayers.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.