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Original poster

If you pay tax then you should not receive benefits.

108 replies

jollydiane · 14/11/2010 22:27

If you pay tax then you should not receive benefits.

Please explain what is the point of taxing me, only to give me money back in the form of child tax benefits? Surely it is better for me to pay less tax in the first place and not receive the benefit. The end result is less money needed to pay for bureaucrats. We then can maintain front line services. Discuss.

OP posts:
MumInBeds · 16/11/2010 22:12

I agree that it is wasteful to tax then pay it back; although changing that would open up a whole new can of worm in a family where parent 1 earns and pays tax and parent 2 gets child benefit and tax credits.

TheCoalitionNeedsYou · 16/11/2010 10:21

It's the other way round. If you recieve benefits you shouldn't pay income tax/NI.

CardyMow · 15/11/2010 21:52

Daisy - that IS the problem. As a family we get back much more in tax credits than DP pays in tax from his earnings. But without that, we couldn't survive. Even if I went back to work, I'd be under the tax threshold, so tax credits would be paying out MORE to us for childcare (as we don't use childcare with me being a SAHM), yet would be getting no extra from us in taxes. Surely it's more sensible for me to be a SAHP rather than get MORE in TC's if I went out to work as well??

Chil1234 · 15/11/2010 07:00

As tax credit thresholds go down and personal tax allowances go up I think this situation will all but go away.

daisylaisy · 15/11/2010 00:34

I think the problem is that a lot of low earners pay very little tax and get much more back in tax credits.

But I agree that if the amount paid and the amount received is the same, then the unnecessary admin involved is lunacy.

WhyHavePets · 15/11/2010 00:11

Do you pay as much in tax as you get in TC?

A lot of people don't, therefore the system would not work. It is what they tried to do in the first place and it was an unmitigated disaster. I think it lasted about 18 months before being replaced.

huddspur · 15/11/2010 00:07

In an ideal world then your premise would work but unfortunately the previous Governments incompetence regarding the control of property prices has meant that the Government has to help people and families that are above the tax threshold.

newwave · 14/11/2010 23:15

Do you mean no benefits of any kind, if you do then i must disagree with you. You may get housing benefit but no tax credit.