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Original poster

AIBU to think that it would have been fairer to introduce a graduate tax than increase tuition fees

112 replies

Tryingtryingandtrying · 04/11/2024 20:12

As it stands most graduates effectively pay a graduate tax for most of their working lives. Exceptions to this are those who do not earn enough, those who pay themselves minimum wage out of their own businesses and those whose parents are wealthy enough to pay fees up front as well as all living costs. A graduate tax would mean everyone who benefits from university education contributes, instead of those on middle incomes paying the most of all.

Yabu - it was better to increase tuition fees
Yanbu - a graduate tax would be a fairer way to fund university study

OP posts:
Xenia · 04/11/2024 20:32

I would rather only 15% of teenagers went to university as was the case when I went and that we had fewer universities. Given I have funded 5 children at university without loans I would be pretty cross if we all had in effect to double pay

MidnightPatrol · 04/11/2024 20:30

The reason it’s a loan not a tax already, is because with a tax you can just leave the country and permanently avoid it.

Whole thing out of control though - an extra 9% tax rate for the next 40 years over what is now minimum wage… how can a 17 year old make that decision?

And much of the time the degree isn’t relevant to the job.

Icanttakethisanymore · 04/11/2024 20:30

TooBigForMyBoots · 04/11/2024 20:27

YABU for not understanding that they are two very different things. Tuition fees are paid to the college. Tax is paid to the government.

Yes but the tax could be used to funds the universities in the OPs suggestion.

Icanttakethisanymore · 04/11/2024 20:27

Tryingtryingandtrying · 04/11/2024 20:12

As it stands most graduates effectively pay a graduate tax for most of their working lives. Exceptions to this are those who do not earn enough, those who pay themselves minimum wage out of their own businesses and those whose parents are wealthy enough to pay fees up front as well as all living costs. A graduate tax would mean everyone who benefits from university education contributes, instead of those on middle incomes paying the most of all.

Yabu - it was better to increase tuition fees
Yanbu - a graduate tax would be a fairer way to fund university study

This has been looked at in the past I believe; political currency podcast with George Osborne and Ed Balls did a piece on it. if I remember rightly, you run into issues around definitions and also tracking people effectively. There is no ‘graduate’ status as far as HMRC is concerned (you’d need to be in the tax system as a graduate in order to be charged the right tax) so that would need to change. Basically is administratively difficult and there are some grey areas .

Sorry to quote the op 😬

TooBigForMyBoots · 04/11/2024 20:27

YABU for not understanding that they are two very different things. Tuition fees are paid to the college. Tax is paid to the government.

MissScarletInTheBallroom · 04/11/2024 20:25

YANBU.

It's not fair that investment bankers and hedge fund managers end up paying less for their university education than engineers and civil servants.

HateThese4Leggedbeasts · 04/11/2024 20:23

The current student loan system is effectively a graduate tax as people with higher incomes pay higher repayments.

I'm a bit confused how an official graduate tax would be differently? Unless you mean it would be forever not just until their loan was repaid?

MrsTerryPratchett · 04/11/2024 20:22

Tryingtryingandtrying · 04/11/2024 20:21

But people studying mickey mouse degrees never pay back student loan either

And driving them into further poverty with an additional tax will work how?

Original poster
Tryingtryingandtrying · 04/11/2024 20:21

But people studying mickey mouse degrees never pay back student loan either

OP posts:
Ytcsghisn · 04/11/2024 20:19

No it would be stupid to have a graduate tax. Most taxes are designed to be paid by people who make the right choices. Further encouraging people to continue to making bad choices and have someone else pick up the bill.

People studying Mickey Mouse degrees at university will never earn enough to pay the graduate tax. While those studying in demand and worthwhile subjects will continue to pay for their everyone else’s hobby degrees.

If you want to go to university and study nonsense so-called degrees, pay for it upfront. Or don’t go.

Overpayment · 04/11/2024 20:16

We already have a graduate tax. It’s called the income tax system.

Paying tuition fees on top is just double charging, increasing them is just another spiteful example of the current politics of envy.

NothingMatterss · 04/11/2024 20:14

No. It would not be fair or a desirable place to live to tax any further.

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