The Lib Dems again show how incompetent they are by bleating about higher rate tax relief on pension contributions which they try to frame as a loophole.
Well excuse me,but income tax is a tax on income as and when it is actually received, not a tax on the accumulation of rights to income (should you actually live long enough to recieve it).
By way of example, take the case of a businessman who pays £1.5m into a pension fund and dies the day after retiring. The £1.5m is partially taxed as income, but it is never received
Next example, assume the businessman lives for another 20 years, and with accumulated earnings the fund pays out £3m. The £1.5m is taxed (partially) on its way into the fund, and again on its way out. If the £1.5 million had been paid into a bank account there would have been no tax on the withdrawl of capital.
So all this does is encourage higher rate earners not to use pension funds as currently structured. And oif course let us not forget that Mr Cable and Mr Clegg will not be taxed on the state contributions to their pension pot because it doesn't exist and their pensions will be paid out of future taxes.