andygardener Posted January 8, 2013 Share Posted January 8, 2013 It's quite simple. A lot of people get back more than they pay in tax. As ever this isn't a simple issue. As you state it does seem a nonsense if the amount returned cancels out the amount paid. Maybe further reform of the tax band would sort that. If you get more back from a credit than you pay in surely that's fraud? I don't pretend to understand the current system but it does sound like a total mess so I'm glad the government are changing it. Link to comment Share on other sites More sharing options...
maxmaximus Posted January 8, 2013 Share Posted January 8, 2013 If you get more back from a credit than you pay in surely that's fraud? I don't pretend to understand the current system but it does sound like a total mess so I'm glad the government are changing it. Many people getting tax credits don’t earn enough to pay tax in the first place. Link to comment Share on other sites More sharing options...
SevenRivers Posted January 8, 2013 Share Posted January 8, 2013 Shouldn't be a need for Tax Credits at all, an efficient tax system would tax people right in the first place negating the need to for an army of pen pushers and investigators to credit tax back. Link to comment Share on other sites More sharing options...
I1L2T3 Posted January 8, 2013 Share Posted January 8, 2013 If you get more back from a credit than you pay in surely that's fraud? I don't pretend to understand the current system but it does sound like a total mess so I'm glad the government are changing it. Yes it is a total mess. Bonkers. No argument from me there and I'm not defending it for one second. I'm just commenting on the economic effects of providing credits, housing benefits etc... to working people. Take that all away in an instant and you got an annual £50bn+ funding issue for businesses, landlords and banks. You are looking at widespread business failure, landlords going under, banks being bailed out etc... It could be done more slowly of course, maybe over a decade. Link to comment Share on other sites More sharing options...
Stan Tamudo Posted January 8, 2013 Share Posted January 8, 2013 Shouldn't be a need for Tax Credits at all, an efficient tax system would tax people right in the first place negating the need to for an army of pen pushers and investigators to credit tax back. Problem is whenever that word is used the opposite usually happens. Link to comment Share on other sites More sharing options...
rollwithit Posted January 8, 2013 Share Posted January 8, 2013 Can't say I'm a condem supporter, but the article with it's political slagging makes sence. Why Income Tax a Household to then pay back housing benefit to them. The whole administration bill for deducting tax, and paying out inwork benefits must cost a fortune. People forget that Family Allowance was introduced in the days when the man was the bread winner and the woman stayed at home. It was a safety net for woman whose partners might not have been forth comming with the house keeping. Likewise, Working Tax Credit was introduced to encourage couples to have more children brought up in families with a work ethic. These would be the tax payers of the future. Now, we have heard only recently that we on the verge of a population explotion in the UK. So Working Tax Credits have done their job and should new be reviewed with the possibility of reducing or phasing them out. If we continue to encourage the population explosion, with not enough people in good jobs able to pay income tax, we wont be able to afford education and healthcare for them as they grow. After all that, we will have only created another pensions crisis. Reducing Income tax for low earners is a good idea. But the government shouldn't be doing this as a favour to big business, so that they can freeze or phase out the minimum wage yet still be able to say they've done something for the working person. Link to comment Share on other sites More sharing options...
andygardener Posted January 8, 2013 Share Posted January 8, 2013 Many people getting tax credits don’t earn enough to pay tax in the first place. Am I being dim here? If you don't pay any tax how can you have a credit against it? Link to comment Share on other sites More sharing options...
Nesbitt Posted January 8, 2013 Share Posted January 8, 2013 Working benefits really are an anomaly. They are a way of giving people other peoples money because they cannot keep themselves. That is ludicrous. If you cannot keep yourself you should not claim some of other peoples money, you should take on a second job and keep yourself. Link to comment Share on other sites More sharing options...
I1L2T3 Posted January 8, 2013 Share Posted January 8, 2013 Can't say I'm a condem supporter, but the article with it's political slagging makes sence. Why Income Tax a Household to then pay back housing benefit to them. Because after the family pay their income tax they cannot afford any rental properties on the market. Sure maybe you could change their tax band to take account of high rents and leave them enough to pay the landlord but that would be odd don't you think? The best thing would be for everybody to pay their tax and for that tax to be spent on services etc... The best thing would be if no housing benefit was needed at all, i.e. if rental costs were fairer and much lower. ---------- Post added 08-01-2013 at 21:38 ---------- Working benefits really are an anomaly. They are a way of giving people other peoples money because they cannot keep themselves. That is ludicrous. If you cannot keep yourself you should not claim some of other peoples money, you should take on a second job and keep yourself. A lot of people do take second jobs, and third jobs. Link to comment Share on other sites More sharing options...
donkey Posted January 8, 2013 Share Posted January 8, 2013 Have you read the article........ you cant even get his name right. Its Richard Littlejohn. I thought it was Richard Littletwat. Link to comment Share on other sites More sharing options...
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