So one of the big domestic politics news story of the day is that Cameron is proposing some tax cuts on savings. Specifically he announced that a Tory Government would abolish "income tax on savings for everyone on the basic rate of tax".
Now don't get me wrong, I love a tax cut, I think we need tax cuts, but think about the practicalities of this for a moment. How is a saver on the basic rate of tax going to prove to the bank that they are? More importantly how is the Government going to verify that the bank is telling the truth about its savers?
The result would be extra back office overhead for banks as they would have to process "I don't have to pay tax on my savings" claim. Wouldn't there also need to be official oversight and auditing of banks by Government - even more admistrative overhead - to make sure that claims were valid?
Great sounding idea, but for anyone other those of pensionable age - which is easy to know and doesn't require the banks to do much other than look at D.O.B. - isn't it going to be impractical and more than likely increase the size and scope of Government to inspect who is saving what and where?