IDS Considering Taxing Disability Benefits
October 6, 2014
The possibility of disability benefits being taxed was reported yesterday in the Independent.
Where’s The Benefit has a very good post on why it wouldn’t be a good idea.
The idea of disability benefits being taxed makes me shake with fear. Same Difference will do anything possible to make sure it is never anything more than an idea.
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Same Difference 
Reblogged this on sdbast.
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IDS’s latest plan to cover up for his screw ups on Universal Credits seems from the spin to be aimed at “millionaires” i.e. people with high capital. But instead of taxing the capital of millionaires he is proposing to tax the incomes of the poor. It doesn’t quite follow does it?
Anyway, by simply changing the taxable status of DLA and PIP he can indeed rake in a great deal of money from the less well off, which is as always the plan. This is not of course just about increasing the tax revenues, it is also about reducing benefit payouts. How so? One answer is Child Tax Credit. If a couple or single person with children suddenly find their deemed income to increase significantly then the amount of CTC to be paid out will fall and in some cases very significantly. In the case of my famiy, and we are a long, long way from being millionaires, we would suffer a complete loss of CTC plus additional income taxes which would reduce our annual income by about 20%. This is not a minor matter.
My response will be forced. Having planned for years to avoid dependence on the state by paying off the mortgage early, saving and my wife and I paying NI contributions which result in a payout of about 4% in the pound I am now going to be forced into abandoning my caring role and allowing the taxpayer and ratepayer to pick up the bill instead of me. £250,000 a year is a likely sum. I am not putting up with this s**t any more.
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