2 ms·

Just a tidbit on the over 65s having "no income". They actually have a lot of income, from collecting pensions and rents. Neither of these income streams were

• iso1210 6y ago
  Fair. Not sure how tax works in america, but those types of income are taxed at a far lower rate (marginal tax on £1k being bunged at a £30k/year worker is 13.8% + 10.5% + 17.6% == 40%. It's 20% for £1k being bunged at a retiree drawing a £30k pension, or less if that income comes from dividends.) And without having to pay rent, the outgoings are far lower too. Someone living on a net of £2k a month after £1500 a month rent would need £3500 net income and cost an employer £52k a year. Throw in student loans and commuting and you'd need even more. Someone owning their house and getting a net of £2k a month would need just £26k a year of income, or even less if that was funded from dividends.