Pensioners across the UK are voicing their concerns over being pushed into paying income tax due to the failure to raise tax thresholds in line with income increases, including pensions. This phenomenon, known as fiscal drag, is resulting in more pensioners paying tax for the first time, while others are facing higher tax rates. Leading charities such as Age Concern and Independent Age report an increase in calls from pensioners seeking clarification and expressing anxiety about the issue.
Telecommuting, once a pandemic-era novelty, has become a permanent alternative for many employees. However, this has raised questions about why New York-based companies’ employees in Connecticut and New Jersey must still pay personal income tax to the Empire State. Fed up with losing tax revenue, New Jersey offers a tax credit to residents working from home who successfully appeal their New York tax assessment. Connecticut is considering a similar measure. Out-of-state commuters who work for New York-based companies are required to pay New York income taxes, even if they rarely go into the office, unless they meet strict requirements for a bona fide home office. New York’s decades-old policy has created a financial burden for neighboring states, prompting them to consider legal challenges and retaliatory tax rules.
