Sunday, July 10, 2005

Tax credit woes

Not only do Gordons' wealth redistribution policies reduce the incentive to work for many, they are costly to administer. It cost taxpayers £403m to administer a system that overpaid £1.9bn in tax credits last year.

I can only reiterate that a general increase in the personal tax allowance would have rewarded the lowest paid in society without costing £403m to administer. I fear the actual solution will be to employ yet more civil servants rather than scrap it.

No comments: