Does it make me a hypocrite that I’m quite happy when my partner and I receive our tax credits every month but then I also think that tax credits are a monumentally stupid idea?
Let me spell it out: people work, they get paid, they get taxed and then taxes pay for healthcare, police etc. This should be the end of it. It doesn’t make much sense that people then get some of their tax back. Now a nice tax rebate is a lovely surprise, but a monthly credit at a set amount seems somewhat bizarre.
Now to those on lower incomes tax credits are a god send, a bit of extra cash each month to tide you over until payday. But surely it would have been better to pay lower tax in the first place rather have to go through an arduous application process in order to qualify for what is essentially a tax rebate.
The Conservative government have tried to change the system and end tax credits, and give the money back in the form of lower taxes and higher wages, not to mention all the money they would save in processing applications. The problem with this is that they tried to do it the wrong way round. By scrapping tax credits before lowering taxes people were not happy about the potential deficits in their monthly take home. And proving that Britain’s second chamber is not an anachronism and that unlike their elected representatives the appointed members the House Of Lords listen to the people. Thanks to the Lords the cessation of tax credits has been delayed. It’s clear that the upper house can see where the government has gone wrong.