Vince Cable set to propose graduate tax

FATBALLZ

I will change my mind and endorse this if Mr Cable and all those who benefitted from free University education pay back taxes of 9% of everything they have ever earned to repay the state for supporting them. I won't hold my breath though.

Andy_L

Idiophreak wrote: »

Except:
"Under a graduate tax, the amount paid would depend upon earnings - compared with the current system in which a fixed amount is paid back."

Meaning you'd be financially penalised for taking a degree that would lead to a full time job...and you'll end up with (sweeping generalisation ahoy) scientist and engineers subsidising the arts even moreso than they do at present.

Would they, or would they just pay it back more quickly and go back to "normal tax", I can't see that the plan would be a "graduate tax rate" for life

Kohoutek

Andy_L wrote: »

Would they, or would they just pay it back more quickly and go back to "normal tax", I can't see that the plan would be a "graduate tax rate" for life

They wouldn't be 'paying back' anything - that's the whole point of this proposed change. Instead of paying back a fixed amount of money, you pay (for example) 2% of your gross income, not including other taxes, for 20 years after graduation.

Sir_Humphrey

Well, the options are everyone paying more tax, universities being chronically underfunded, or students paying upfront and having American-style student debts.

Or you could have a graduate tax.

Kohoutek

Sir_Humphrey wrote: »

Well, the options are everyone paying more tax, universities being chronically underfunded, or students paying upfront and having American-style student debts.

Or you could have a graduate tax.

Or cutting places at universities that don't produce enough high quality graduates

http://www.guardian.co.uk/education/2010/jul/13/cut-student-places-university-funding

Sir_Humphrey

Kohoutek wrote: »

Or cutting places at universities that don't produce enough high quality graduates

http://www.guardian.co.uk/education/2010/jul/13/cut-student-places-university-funding

I doubt that would fill the gap.

Oldernotwiser

I think it's a good idea. I've always advised my clients to look on their Student Loans repayments as a graduate tax anyway as it's far more like that than debt repayment. This way is far more honest and straightforward than the way things are done at present.

FATBALLZ

Oldernotwiser wrote: »

I think it's a good idea. I've always advised my clients to look on their Student Loans repayments as a graduate tax anyway as it's far more like that than debt repayment. This way is far more honest and straightforward than the way things are done at present.

Yes, so it's exactly the same thing except the graduates have an unlimited liability, so theres even less point going to University than there is already. Unless you want to do a stupid degree and never pay anything back.

Pagg

Kohoutek wrote: »

Or cutting places at universities that don't produce enough high quality graduates

http://www.guardian.co.uk/education/2010/jul/13/cut-student-places-university-funding

UCL's Malcolm Grant

A past Student Grant!

Kohoutek

FATBALLZ wrote: »

Yes, so it's exactly the same thing except the graduates have an unlimited liability, so theres even less point going to University than there is already. Unless you want to do a stupid degree and never pay anything back.

Yeah, if you think about it, this proposal is really a social policy, not an education or taxation one.

At the moment, everyone that studies for three years at an English university is liable for the same amount of student debt for tuition fees regardless of income, but graduates with higher earning jobs pay more towards the cost of higher education because they pay more taxes, some of which goes to state university funding.

Under the new system, graduates with higher earning jobs pay proportionality even more towards the cost of higher education than lower/non earning ones, because student debt has been replaced by effectively putting 2% or so more on income tax.