Grumpy David wrote:Hexx wrote:The amount of vitriol over the laughably named "dementia tax" is staggering.
It's the IHT whinge fest x10.
People who would consider themselves on "the left"
aghast that those (i.e. "hard working family member who wants to leave it to me") with substantial assets should contribute to society's costs.
Isn't it effectively a 100% tax rate on assets over £100,000?
Whilst I expect to have no inheritance whatsoever from parents, I am generally opposed to the concept of a harsh inheritance tax. This seems very harsh on those with long term health care needs.
Potentially - yeah.
It's a bad idea in that it mixes the idea of pooled social contributions.
E.g. You and I both have £300k assets.
You need care and have to pay £200k before the state helps.
I don't need care an need to pay nothing.
Only you pay for your costs at the start (and vice versa)
In a "pooled" situation we might both contribute even though neither of us might need it, or both will.
It's simply "From each, according to need [and ability to pay]" which is a huge change from how most social security costs are funded.
If people want to object on that basis I'd agree - I'm just frustrated with the "hand's off my money" style response from lots of people. How dare people with near above average assets (IIRC it's about £130k, but that's not adjusted for ages) be expected to pay more! Shocking!
Edit - it's interesting to note the change the plan suggests.
Effectively the policy was to be a cap on everyone "You wont pay more than £70k towards care costs", now it's a floor "Your assets wont fall below £100k".
The former massively benefited high value individuals more, and could wipe out smaller asset holders.
The new idea protects smaller asset holders and means greater impact on high value individuals.