Tuesday, June 22, 2010

A snapshot of what is wrong

James Bartholemew points us to just a single example that illustrates a far greater whole. How complicated is the benefits system?

This complicated,
"The Child Poverty Action Group annually publishes the Welfare benefits and tax credits handbook.
How many pages do you need to read to get the picture? Well, I just bought the out-of-date 2009/10 edition because I could buy it much cheaper, second-hand, than its cover price of £37.
The total number of page is 1,601."
As he says,

The benefits system has become ludicrously complex.


Chuckles said...

We can therefore assume it is not about benefits? i.e. It is about giving jobs to the people who administer the benefits. e.g. Jobcentres are not about finding jobs for the indigent, they are about giving employment to the people who work in the Jobcentres.

Budgie said...

The whole tax and benefits system is ludicrously complex. And it would be so easy to simplify.

Regarding income, the fundamental principle is that no-one should receive benefits at the same time as paying taxes. And no-one who increases their income should pay a higher marginal rate than the level of their income warrants.

An example would be to roll NICs and IT into one; scrap the 50% rate and scrap all child/working tax 'benefits' and child allowance.

Scrap child allowance? Controversial, but one way of compensation whilst recognising that children are much more cheaply looked after by their own families (state care of children is fabulously expensive) is a personal income tax allowance for everyone, including children. It would be transferable to parents. This maintains simplicity and adheres to the principle of replacing tax-and-benefit with no tax.