I do wonder if there is some subconscious undercurrent of control and farming dependency from Gordon. If Gordon is 'generous' he can threaten that the Tories will scrap it. It is far harder to push the idea that the Tories would reverse a tax cut!

It also allows the control-freak social engineer in most Sociofascists to tinker and fiddle via such mechanisms. A flat tax band does not allow them to decide like benificent overlords who shall receive their largesse. Another thing is that a tax credit is a poisonous 'entitelment' - i.e. an obligation on the other taxpayers to fund those claiming. It degrades those claiming (if honest hard working and self-respecting) and it instills benefit-culture in others.

If you had a larger personal allowance you have no 'entitelment' at all, but just less money taken. It is quite a difference in my view.

Posted by: Tim at November 16, 2006 10:40 AM

Of course, Gordon Brown pledged to do away wth means testing before he came to office, whereas in fact he has extended it in scope hugely.

The supposed advantage of means tested benefits (such as tax credits - yes they are indeed a benefit, the name is a deliberate misnomer) is that the same amount of money can be better targetted. But this ignores the effect they have on incentives and the deadweight cost of administration. They encourage dependency because the withdrawal rate combined with income tax leads to marginal tax rates of 70%+.

If Brown really wanted to help the poor and was bright enough to do a bit of clear thinking unencumbered by Labour party dogma, he'd do what James suggests and also he'd remove employer and employee NI contributions, which are nothing less than a tax on employment. In fact, the employee, in reality, pays the employers contribution through lower wages. Eveything should be done to lower the tax burden on the poor and to incentivise them to help themselves by their own efforts. The current system prevents this, but then if people thought of themselves as self reliant instead of dependent on government largesse, then perhaps they wouldn't vote Labour. Brown likes to take their money and opportunity away so that he can then make out that the government is helping them when it gives some of it back. The man is either a fool or a fraud or both.

Posted by: HJHJ at November 16, 2006 09:38 PM

Having four children of school age and a fairly modest income, I am entitled to receive Child Tax Credit. After a long battle with my concience, I reluctantly applied to receive my "entitlement". I duly received some money, but was required to submit another application shortly thereafter. My original application was made on-line, and I saved the forms on my hard disk without printing paper copies. Unfortunately my hard drive started making funny noises and eventually gave up the ghost so I lost all of the data thereon including the forms I had filled in for my Child Tax Credit application.
Since I was unable to "renew" my application because I had lost the reference numbers on my original application, I did the only thing I could under the circumstances and made a fresh application.
At about this time I stopped receiving the benefit. I think, in all, I received it for about four months.
Soon after I started to receive letters threatening me that I had received money to which I was not entitled and that I owed the tax man over £1,000. Not supprisingly I contacted the Tax Credit office and explained the problem I had had with my computer and the very polite person on the other end if the 'phone said that she would make sure that the threatening letters would cease and suggested that I resubmit my claim and that I should expect to receive notification of the amount of benefit I could expect. Alas this didn't work and I received another threatening letter which I followed up with another phone call to another polite official. This time the official offered to tke down details of my claim on the 'phone and again made promises that everything would be sorted out. Needless to say no money found it's way into my account, but I did continue to receive threatening letters. I decided to contact the helpline again but on this occasion had an accountant with me who was familiar with my income and was willing to speak to the official on my behalf. After the accountant had finished speaking to the official, I spoke to him and said somthing like "You can't imagine how frustrating all this is.", to which he replied "Yes I can.". I beleived him.
I still receive no Tax Credit, but at least the letters have stopped. I have recently had to take out a personal loan, but feel happy that I am no longer receiving a benefit.

Posted by: Rob at November 16, 2006 10:46 PM

God if i hear another person say we have the highest amount of people with disabilities I'll scream. We have the worse record in the UK for accidents, people worked and died while employers took people off other jobs and told them to carry on. I saw a man die, my boss said with twenty minutes OK Rob finish the job do not waste time.

Thats was only twenty years ago, now yes it is a bit better, not not a hell of a lot.

I worked and had an accident the company was found to be neglect they had not serviced the lifting machine for four years and the lifting arms snapped breaking my back, the company was not fined because it had promised to make sure it never happened again, the company told the court it had never happened before after the case we found out three people had in fact died for the same thing.

I live in chronic pain all the time have no bowel use and my bladder hold only a small amount.

For this I get £112 a week in benefits, my wife was born with Spina bifida but worked for many years until she damaged her hip, she gets £114. out of this we pay rent and council tax of £120 a week.

You call this benefit Call it poverty.

So yes we have fraud within disability, we also have fraud in every other sector of the government, it was stated not long ago fraud within the DWP was massive, Prescott committed fraud, a lot more have also done the same but mind you they forgot if I forgot I be banned from benefits.

People forget the people now on benefits are those mainly who worked in our steel works our coal mines, and again I have been waiting to find a job, what I mean is after seeing three job brokers I was informed they would contact me when anything comes up So get a life and see the real world of disability.

Posted by: Robert at December 8, 2006 10:48 AM