childbenefit- unfair-costly-vote loser.(6 Posts)
The government needs more income. Those that earn more should pay more.
So the simple and fair thing to do, maintaining the principle of independent taxation is to put the higher tax rates up 1%. This also allows the Tories to stick to their election promise of not taking away child benefit. If this direct tax is not enough and they wish to remove universal benefits such as child benefit then remove it for everyone - that is simple fair and COST EFFECTIVE. ( Dont worry about broken promises they've been there done that on so many other things.)
So what do they do - complicate and compromise so People can refuse benefit or they could do tax return. Hang on what about the automatic state pension credit if you care for child under 12? What about the fact that a single high earner household £60k - claims no benefits - volunteers her time in the community gets trodden on whilst the double earner household gets £100k AND child benefit. NONSENSE - WHY HASNT THIS BEEN STOPPED? HOW much is the TAX OFFICE SPENDING on communicating these changes, and then policing them? Whats left as a saving? B sure the votes for the coalition party are flying around in tatters in the wind.
"HOW much is the TAX OFFICE SPENDING on communicating these changes, and then policing them?"
I think it's surprisingly little extra cost in reality. So far I've had one solitary letter from HMRC which can't cost much. Self-assessment tax returns are liked by HMRC which usually means they cost less to process. The principle is therefore correct but what I think should have happened administratively is that CB was scrapped and that the CTC system (based on household income) was beefed up for those on low incomes. Expect CB will eventually become part of the new Universal Credit and the problem will be solved.
I agree with OP. This is a cocked up lash out. Just like the student fees debacle, it will hurt the middle and end up costing more.
As a HRT payer it's not that I resent losing the CB. Clearly the government needs to save money. What I resent is the absolutely stupid and unfair way in which it has come about. I'd be OK with it if it was 'every family earning over £x'. But it's blatantly unfair for one family to lose CB whilst another earning much more does not.
For me this was a badly thought out policy probably dreamt up the morning of the Conservative conference as a way to show the electorate that they are not afraid of hitting the rich. Except for the fact that the vast majority of HRT payers are not rich...just comfortable. And I think the fact they thought this was a good idea just shows to me how out of touch Cameron & Osbourne are.
We havnt had any information through yet, neither have any of our friends. We will be losing our child benefit, I must get on line and stop it, as I don't want the faff of having to pay it all back.
It's not really a 'faff'. If you complete a SA return this summer your tax code will be amended, that's all. You may not end up paying anything back for many months plus.
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