Monday, 4 October 2010

Child Benefit Cut [UPDATED]

George Osborne has announced this morning that Child Benefit is to be abolished for higher rate taxpayers.

 

I personally think that this is excellent news. If someone is earning more than £44,000 per year, they're taking home roughly £2,700 a month. They certainly don't need to be claiming benefits from the State, paid for by people earning less than half their salary.

It will shave £1billion off the deficit. Definitely worth it, then.

[UPDATE]

Unbelievably, some fuckers are actually moaning about this!

OK, there are some problems with how it's being worked out. If you're a higher rate taxpayer, you carry on claiming it and then declare it on your tax return. It's then clawed back through your tax code. Which is cumbersome. And there's the issue that the non-entitlement kicks in when one or more of the parents is a higher rate taxpayer. So you could have a family where both parents earn £43,000, and they'd still be eligible for Child Benefit, and another family where only one parent earns £45,000, and they wouldn't be eligible.

So there are some winners and some losers.

I suggest a level playing field.

ABOLISH IT.

Get rid of it completely. Use the savings to increase tax credits, which is already means-tested.