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Politics
Original poster

"Graduate tax" in all but name

30 replies

longfingernails · 09/10/2010 20:14

The press is reporting a Lib Dem "u-turn" but how is what is being proposed anything other than a graduate tax? It seems those in higher-paid jobs will have to pay a higher interest rate on their loans than those on lower salaries.

To those of us who believe in flat taxes, that is fundamentally unfair.

It costs someone earning £50k the same amount to buy a TV as someone who is unemployed. It costs them both the same amount to buy 30 litres of petrol. Why should those who, in the future, earn higher salaries pay more in interest for a fixed number of lectures and tutorials than those on lower salaries? How is that "fair"?

It is just socialist redistribution claptrap - more of this "inequality" nonsense - punishing the successful for being successful. I don't care about relative poverty in the slightest - though absolute poverty is a problem. "Combatting inequality" is just a fancy way to say "more tax".

I understand why Vince Cable wants it, but why are the Tories letting this happen?

OP posts:
Original poster
longfingernails · 09/10/2010 20:34

BeenBeta Yes - I guess that would be the rational response.

Providing there is no penalty for early redemptions, like with mortgages, that might mean it is not as bad as I first thought.

OP posts:
onimolap · 09/10/2010 20:34

I'm with OP in that I think it is wrong to charge different prices for the same product.

And I'm wondering how it will impact on potential applicants: especially for long courses such as medicine (where I really want the best, not those from the wealthiest families).

MumInBeds · 09/10/2010 20:27

That depends what you mean by "work" BeenBeta I think the gov are keen to get loans paid back ASAP as that money is needed to loan to new students, so anything that stops people paying the minimum because the interest makes it pointless to do otherwise will help.

BeenBeta · 09/10/2010 20:25

It wont work. High paid graduates will just pay of their loan more or less straight away and hence never pay the higher rate of interest.

huddspur · 09/10/2010 20:18

I don't have an issue with a graduate tax, if you benefit more from your degree (ie you earn more) then it doesn't seem wrong to me that they have to pay more towards your degree.