Golding calls for Increase in Tax-Free Threshold for Pensioners

Opposition Leader, Bruce Golding, has suggested that the government increase the tax-free threshold for pensioners to $1 million per annum from $283,440, in light of the economic demands, with which they were faced.
Delivering his presentation in the 2006/2007 Budget Debate at Gordon House, yesterday (May 4) Mr. Golding said pensioners “have the same needs that all of us have – food, shelter, clothing, light, water and telephone.but in addition, they have to buy drugs and pay for medical treatment to keep them alive”.
“All of that has to come of their meagre pension,” he continued, “and the majority of them are not managing.”
Pensioners over 65 years of age are entitled to a tax-free threshold of $283,440, with $238,440 for those under 65.
Providing examples of various categories of workers and their average annual pensions, Mr. Golding said the average policeman’s pension was $506,403, of which $55,741 is taxed, leaving a residue of $450,662 and a weekly pension of $8,667.
In the case of civil servants, the Opposition Leader said their average annual pension was $446,372, of which $40,733 was taxed, leaving a net income of $405,639. The civil servant’s weekly pension would then be calculated at $7,801.
As for the average annual pensions of teachers, he said this was presently $367,253, of which $20,953 was taxed. A residue of $346,300 remained, which would result in a teacher’s pension being $6,660 per week.
“When some pensioners have to spend as much as $4,000 per week for the drugs that they need to keep them alive, we have a duty to do more for them, to take less out of the little that they are getting,” Mr. Golding lamented.