In an outbreak of commonsense, the Parliamentary Ombudsman has described the way that Tax Credits are recovered as "harsh" and "unfair".
Exactly.
And the way in which they are calculated (leading to an effective 70%-plus tax rate for most claimants), which discourages work.
And the way in which they encourage single parenthood over couples.
And the way in which HMRC demand that claimants report every trivial change in circumstances. Surveillance society. CCTV. Road pricing. Etcetera.
May I suggest we replace the entire welfare system with a Citizen's Income type scheme?
Tuesday 9 October 2007
"Tax credits harsh and unfair"
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2 comments:
...and a flat tax that removes most poor households from income tax in the first place.
Rog, to be fair, it's the high personal allowance (or interaction between CI and tax rate) that removes lower earners from being net taxpayers.
The rate is not so important, altho' of course I am in favour of flat i.e. the same rate for everybody and everything.
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