Tax credits cost £171Bn over 7 years

[mercGLowner]

Nothing like this to make my blood boil. I wonder if Sir William Beveridge is turning in his grave. I cannot imagine that he envisaged a Welfare State to " aid those who were in need of help, or in poverty" which cultivated such large scale dependency and such a huge redistribution of 'wealth'. £171bn of state handouts in working and child 'tax credits' in just 7/8 years.

http://www.bbc.co.uk/news/uk-politics-20873180

[mercGLowner]

Eric Mc said:

So what is the OP's atitude to personal tax reliefs?

Does he think that the (current) personal tax relief of £8,015 is a handout that is helping to ruin the country.

No, we pay far too much tax in this country and anything to reduce the tax burden is to be welcomed. Actually, I am a very strong supporter of a flat tax system like the one advocated by the Tax Payers Alliance. A £10K personal tax relief for all, 30% (or whatever is appropriate) flat tax above that - no National Insurance and an ability for local councils to raise up to 50% of their revenues in local taxation. The overall tax burden to reduce to 33% of GDP. Reduction or abolition of a myriad of other taxes (including tax on fuel)... More here

http://2020tax.org/2020summary.pdf

I am also a supporter of smaller Government and that money spent centrally is often not efficient. Anything that puts spending power back in the hands of the people is a good thing. As for the Welfare budget - it is rocketing out of control and perpetuates dependency on the State, no doubt one of Gordo's motives was to make everyone dependant on HIM and his party's handouts - didn't work though.

[mercGLowner]

Eric Mc said:

For those tax credits that directly replaced an equivalent tax relief - then, what is the difference?

In fact, the principle of a credit rather than a tax relief in my mind is BETTER - because often those in need of assistance may not be paying any tax - and therefore canot avail of a tax relief. A Tax Credit system is used in Canada and apparently works well there.

My argument is not against the principle of Tax Credits. It's against the manner in which they were implemented and administered by Brown and Balls.

I dont know the facts, but I suspect that Tax Credits requires an army of beauracrats/people to administer.