Wednesday, October 6, 2010
Child Benefit fiasco
The Child Benefit fiasco has raised objections. But not the right objection.
Yes it is ridiculous and unfair that a couple on shared income of £87,000 might keep child benefit, whereas a couple on combined income of £45,000 may lose it.
The Tories say it's fair that the middle classes take a hit too. Which is true. But, why should someone on £45,000 lose out on about £1,500 a year, but someone on £2 million or £20 million a year lose no more? This is not a way of making the better off pay their fair share.
The really fair way of hitting the better off would have been to raise the top rate of tax. But of course that would make the super rich pay more, wouldn't it? You know, people like George Osborne's banker friends.
When even this small change is such a balls-up, it doesn't inspire much confidence that Osborne knows what he's doing.