Tax credits are worked out on household income so why can't child benefit use the same system - the information on how much households earn must already be there?
Its all very well to say we are all in this together but people earning incomes in the 40s have already been hit by this government- 1. loss of tax credits (fine as promised in manifesto),
- Not eligible for new personal allowance of 7000 (basic rate tax payers only will benefit whereas lib dem manifesto said that anyone earning less than 100,000 would benefit)
- Freezing of threshold for higher rate tax
- NI increase?
Are these measures not enough to squeeze the middle classes?
Now there will be the loss of child benefit too.
It appears to have got to the stage where some one earning 45k has no more disposable income than someone earning considerably less and claiming child benefit, tax credit, cost of childcare etc.
The tories are talking about incentives to earn more at the bottom end of salaries but are at the same time creating less incentive for people to earn more in the 30-50k bracket.
Those lucky enough to earn 80k have not lost out as much as those on 45k so the new proposals could not be described as progressive.
I also hate the way the tories are saying that it isn't fair for a person on a low income to pay the child benefit of someone on a higher income. Well most of those now on higher incomes with children were once on lower incomes and once paid for other people's child benefit. Those paying higher rate tax are paying enough tax to more than cover the cost of the child benefit they receive.
Furthermore if we are all in this together then I look forward to the announcement that pensioners who pay higher rate tax will not receive a fuel allowance as they don't need it and have wide shoulders.
MPs could also reduced their salaries to 44k as it is apparently more than enough to bring a family up on.