07 May 2015

pension

i was thinking if some people don't like means test because of its stigma, in the case of old aged pension, can we simply dish out the pension for everyone aged 65 or above, and then for those who have to file a tax return, at their senior age, there will be a separate section where they have to put in the amount of pension received and if their net income, apart from the pension amount, has reached a certain level then in ascending scale the whole amount of the pension will become tax.  this will do away with the stigma issue, and somehow will minimise all hassles and administrative work.  if we go along that line, only two questions remain: (1) the pension amount, and (2) the level of net income in a tax return that serves as the ultimate means test.

No comments: