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Unfair system of Means testing
Member Name: ianphotocd
Date: 26/07/01, updated on 26/07/01 (85 review reads)
Advantages: less money leaving government pockets
Disadvantages: large income families benefit greater
The Government have abolished the married persons tax allowance and say they have replaced it with a childrens tax credit.
I understand what they have done but the system they have in place for assessing who receives it is grossly unfair.
I have a decent job, and yes I earn a fair wage, just over £42000 per annum. My wife does not work and I have 3 children under five. I cannot claim this childrens tax credit because my wage is in excess of the limit of £42000 but my wife does not earn. One of my married friends is a teacher and earns around £33000 per annum. His wife is also in employment earning £37000 per annum. This couple also have three children under five. This couple together are bringing in a combined income in excess of £70 000 into their home yearly. I bring in just over £42 000 yearly. I am not entitled to claim this tax credit but yet this other couple are.
Surely a much fairer way to bring in means testing would be for the total income instead on one of the incomes.
I am not complaining because I dont receive this but because of the unfair way in which it is assessed. I am happy enough with what I get but how much more money can be put, say into the NHS, if the qualifying figure for this tax credit was based on joint income instead of one income.
So many more people could benefit from less money being paid in tax credits.