Quote:
Originally Posted by shillelagh
Vince Cable has asked Lord Browne to have a look into this idea .. instead of getting a student loan to pay your way through university or college .. then paying it back when you get a job .. that you pay a graduate tax when you've got a job after uni .. which is at a higher rate. Somehow i dont think hes thought this through .. if a kid goes to uni .. then has to pay a higher rate tax when they get a job .. what happens if they take a job in another country .. and emigrate. But it might also put kids off going to uni .. having to pay a higher rate when they get a job afterwards .. especially as its hard work to get a job ... was reading something the other day about graduates not being able to get a job after uni ..
BBC News - Students to face higher costs as graduate tax proposed
BBC News - Graduate unemployment rate rises 25%, think tank says
could you imagine .. being at uni for 4 years .. couldnt get a job in your chosen field .. so you end up working at primark or maccydees .. basic rate .. and then having to pay a higher rate of tax .. because you went to uni? |
The NUS originally devised the graduate tax. They proposed taxing based on income so those with high incomes would pay more because it's taken out as a percentage but also they would increase the actual percentage number too.
Those earning less would pay less. They argued this would make it 'fairer' to those who go into professions such as teaching which benefits society and which need a degree but pay less well than other sorts of jobs.
This would alleviate some of the problems you describe.
Personally I think it's unfair to people who work hard, gain a good degree and go on to earn a high wage. They're effectively financing the degrees of students who go to university and fail.
I just can't see how a graduate tax would work. It's a 'risk free' option for many. Go to university, have a great time, and if you fail the successful ones will pay your tuition fees.
I believe it will create a large divide in universities. Some universities will charge large amounts of money up front as a way to avoid people paying a graduate tax. Those who are well educated, come from wealthy backgrounds and know they're going to graduate with a good degree will simply pay up front to avoid paying large amount of tax if they get a well paid job after university.
Another problem is that even if you do gain a 1st class degree at Oxford.. who is to say it has anything to do with your income after university? You might gain a degree in classics and go on to set up a business that has nothing to do with the original degree. Is it fair to tax the business owner large amounts because he gained a degree, over another business owner who didn't bother going to university?