Minimum wage: Stopped the exploitation of the workers being paid peanuts ?
Working tax credit, made me £27 a week better off. How does it penalise people who go back to work.
It tops up their pay ?
Minimum wage stripped out competition and levelled out everything for those at the lower end of the employment scale so no incentive or reward for doing a good job for a good employer. It makes us uncompetitive against the Chinese company who pay someone £5.00 a day to do the same job, and though it might make you better off compared to previously, thats not the point as it has driven up prices, so in real terms you are not better off, which is why the gap between rich and poor increased significantly under Blair.
Tax credits, the more you earn, the less you get so again penalised for doing a good job, etc. This is especially the case with child care as I posted recently. One of the reasons for introducing tax credits was to help with child care costs which are massive, and for millions, the biggest cost after mortgage. In our case, child care is not much less than the mortgage.
If you work more hours, you need more child care, so your costs go up. But if you work more hours, you earn more money so your tax credits go down, consequently, you end up with less money for working more hours, leading many to think they won't bother. Don't go to work, you don't need to spend anything on child care, and because your income is less, they pay you loads.
On top of that, its extremely inefficient, complicated and massively abused with millions paid out every year incorrectly.
If they got rid of tax credits and just did it through the income tax system by reducing the tax rate, your £27.00 would cost the Govt £27.00, as it is, it probably costs them about £30.00
Germany's economy is out performing most of Europe, but they have gone through years of austerity since reunification. One of the most popular schemes was a scheme that employers and employees could opt into. The employee would get a much higher tax threshold, I think it was about £12000, so they could earn that much and not pay any tax. But in return they waive all their employment rights meaning they could be sacked at the drop of a hat. Which the employer likes as it cuts their costs. Consequently the employee would want to keep the job, where they are taking home more money, so would work hard, not pull any sickies, etc, so productivity increased, making the German economy as a whole much more competitive...everyone's a winner.
Introduce such a scheme in this country, your having a laugh, to much "can't do" attitude.
Topic: Sh1t and same pot come to mind !! (Read 3531 times)