Lib Dem crackpot idea of the day

From The Telegraph:

The Deputy Prime Minister said that at a time of economic strain, it was questionable whether it was right to continue making payments to multimillionaires such as Lord Sugar, the Labour peer, businessman and television star.

But the benefits will continue for the rest of the Parliament, due to come to an end in 2015, because a promise to maintain them was included in the Coalition Agreement drawn up between the Conservatives and Liberal Democrats when they came to power in 2010.

Iain Duncan Smith, the Tory Work and Pensions Secretary, is among those who have previously called for the end of universal benefits for the elderly, regardless of income. The winter fuel allowance alone is worth up to £200 for each pensioner – £300 for those over the age of 80.

As ever, it's a bonfire of prejudices here, but I wonder, what is the point of all this? The winter fuel allowance, free bus passes and free TV licence for over-80s "cost the taxpayer" something like £4 billion a year, if you go through the expense and rigamorale of preventing pensioners with assets of more than £1 million (the suggested threshold), which is maybe 1% of pensioners, that "saves" about £40 million a year, which is f- all, compared to the extra £100,000 million they have been spending each year since the "financial crisis" was started.

And seeing as means-testing is just taxation for dishonest politicians or gullible voters, why not hike Band H council tax by a few per cent and get the £40 million in that way?

Do these people not understand maths: reducing somebody's benefits it exactly the same as giving them the benefits but increasing the tax they pay, only the latter is simpler, cheaper to administer and more honest. This is just like the Child Benefit changes: what they boil down to is that higher earners with children will continue to receive Child Benefit but they will pay a much, much higher marginal rate of tax on earned incomes between £50,000 and £60,000 a year.