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Posts Tagged ‘Graduate Tax’

Today saw the formal launch of Owen Smith’s Graduate Tax.

For reasons that only he knows, he’s proposed a threshold of £15,000. This is six thousand pounds lower than the threshold used for post-2012 Tuition Fees. What this means is that under Owen Smith’s system – graduates earning less than £21,000 would once again be paying towards their higher education.

Smith outlined the Graduate Tax would be an income tax surcharge of 1-2% of income. So someone earning £21,000 would now be paying between £60 and £120 in Graduate Taxes. This despite them paying nothing under the current system. This stealth tax on the poorest graduates means that the tipping point where someone is better-off under the Graduate Tax may be as high as £22,700.

And remember, as I outlined earlier this week, they would paying these extra taxes for no good reason due to the inherent flaws in a Graduate Tax.

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