It's not a good way of taxing the wealthiest because as ever, they will simply change their behaviour. You just watch the amount of tax-free money that people will release at the age of 55 and dump offshore with the rest of the money they're no longer saving into a UK pension. Watch the demand for Britannias spike for the VAT and CGT benefits. See how many wills are that have been executed in the last 18 months get amended.
None of this benefits Reeves. A far shrewder move to raise far more money would have been to limit pension tax relief to something marginally above the Basic Rate - say 25%. That would mean lower earners who've been talked into counter productive auto-enrolled pensions would get a boost, the Treasury would make a massive saving and higher earners could then be further incentivised to invest in UK businesses with some form of tax credit - whereas UK pension funds currently invest less than 3% in UK equities, a historic low.
When you say Proth is pissed off about "some tax" just ask yourself whether you'd be happy working for 40p in the £1. I'm not so I won't, it's as simple as that. That's how disincentives work. It's corrosive.
Edit: It seems Reeves agrees with me in some respects: https://www.theguardian.com/politics/202...m-backlash
None of this benefits Reeves. A far shrewder move to raise far more money would have been to limit pension tax relief to something marginally above the Basic Rate - say 25%. That would mean lower earners who've been talked into counter productive auto-enrolled pensions would get a boost, the Treasury would make a massive saving and higher earners could then be further incentivised to invest in UK businesses with some form of tax credit - whereas UK pension funds currently invest less than 3% in UK equities, a historic low.
When you say Proth is pissed off about "some tax" just ask yourself whether you'd be happy working for 40p in the £1. I'm not so I won't, it's as simple as that. That's how disincentives work. It's corrosive.
Edit: It seems Reeves agrees with me in some respects: https://www.theguardian.com/politics/202...m-backlash