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Have no cliff edge and you are giving £££ to mega earners.
Just do that, make the marginal rate smoothly increasing, adjust the bands until it's all revenue neutral. Scrap NI too. Couple of day's work at most
frankenbike-
Feels to me like there would be some kind of deadweight inefficiency introduced by taxing one group of rich people more to pay transfers to another group of rich people, but I sort of get the sentiment.
Don't underestimate how much people like hypothecated taxes though. The (incorrect) idea that NI is some sort of personal pot or insurance policy you fund allows the collection of more feathers with less clucking (as de Tocqueville almost said).
NickCJ
There’s no good solution to these cliff edges. Start tapering the support at lower income levels and you create really high marginal tax rates. Have no cliff edge and you are giving £££ to mega earners.
For anyone caught by this isn’t the simple solution to chuck anything over £100k in your pension for a few years?