| Topic: | Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re:Re Brillian article - | |
| Posted by: | John Connelly | |
| Date/Time: | 11/11/10 12:18:00 |
| In response to Susan Kelly, workers who are not in a company pension plan pay 31% income tax intially - 20% basic + 11% National Insurance. Governments of both main parties have reduced basic rate for all taxpayers in recent times, usually accompanying this with an increase in national insurance that only applies to those in work. Today I pay 20% tax on my occupational pension, 11% less than someone working for a living. Those with savings pay 20% basic, while those living off dividends pay only 10% basic rate. The tax system itself discriminates against people who work for a living. I believe the national insurance, which is really just an income tax on workers (plus the employer contribution) should be incorporated into basic rate and paid on all sources of income at the same level. If this was raised to 31% - and this could not be done in a single step for obvious reasons - the extra would provide funds for education and other services. (Obviously, a fiscally neutral tax rate would mean workers would pay less and those whose incomes come from other sources would pay more than at present.) On the issue of university places, if the government agrees that many courses are "mickey mouse" then student numbers should be constrained. If they are not prepared to do so and they really believe many courses are a waste of time then they are condemning young people to a future in debt as a result of their spinelessness. Additionally, why should potential nurses, teachers, social workers etc. be obliged to go into debt in return for "the privilege" of serving the community on much lower salaries than future city spivs? The national debate about education should not be about how Higher Education is paid for but about the appropriate mix of education needed to serve our future collective needs. If young people leaving school and further education were better equiped to deal with monetary issues such as budgeting and dealing with debt I am sure many of them would make different decisions at that point than they do today. |