Saturday, June 26, 2010

Finally a budget for single people

For years, especially under the socialist government of Labour we've had to listen to all the benefits which would be going to 'hard working families', how 'schools n' hospitals would have as much money as they wished and how 'the poor' must get everything they want without having to actually get a job.

It was all to get us to be involved in the state. Child Tax Credits are clearly inefficient as a way of redistributing income and a higher personal allowance would do the job of ensuring the lowest incomes don't pay tax to keep them in an unemployment trap, but that wouldn't have worked for Gordon. He wanted you to be dependent on the state; to love it and him for its generosity.

So since I've been paying tax it's been a slavering socialist at the dispatch box telling me how much more of my money he's going to be taking from me to throw into his pit of money to waste on pointless projects.

But last week it was different: here was a budget which actually pleased me in many ways.

For now I don't have to pay so much for other people's children or the endless pursuing of the married couples' vote with one off lump payments for newborns and endless nonsense about monitoring schools. You may think I'm being unreasonable but for thirteen years the single and childless were shouting 'What about us?' at the TV and into newspapers. We don't get benefits, we just bloody pay for it all and sit there struggling to get a deposit for a house, ineligible for any tax credits or council housing because we've chosen not to spawn.

The rise in VAT is annoying because of course it increases money we give to the EU which is already far too much. It's politically preferred, of course, as whilst it will affect inflation until the 13 month rolling average sorts that one out it isn't a headline grabbing increase in income tax and doesn't show on the monthly salary statement which is the general view of how we all work out how better or worse off we are.

I only hope that in November the coalition will have the guts to realise that what they've started is a good thing. We shouldn't be worrying about winter fuel payments because if we didn't rape the pensions system and get taxed to kingdom come then people would have enough for their retirement. Stop state dependency and grow a pair. This country started the industrial revolution and it was the Victorian work ethic which allowed us to be great whilst at the same time improving conditions for the poorest in society. That concept has been hidden but I do hope that it hasn't been lost.

And whilst we're on the subject of growing a pair, the increase in the number of MEPs gives the chance that the Tories and Cameron said he wanted to get rid of this Lisbon Treaty. They came first in the country in 2009 with eurosceptic rhetoric and claims that they wanted to repatriate powers to Westminster.

But at the first chance he has he's already been wooed by Barroso over eggs and bacon and a quick kiss and cuddle at the first summit he attended as Prime Minister.

We cut the defence budget but ring fence international 'aid' which harms the chances of free trade and global development whilst Cameron bleats on inaccurately about how he'll push ahead with bilateral trade agreements for the UK. Not since we joined the EEC, Cameron old chap. We have a single trade policy now: we don't even get a seat at the WTO...


Mark Wadsworth said...

Wrong, I'm afraid.

The 'welfare state' pays for children in two ways:

1. Child Benefit - which is non-means tested and flat rate. So for most people, it's just a tax rebate and has much the same effect as being given extra personal allowances for children. It is far less than the 'cost' of having a child so is non-distortionary. Fraud, error, overpayments and admin costs are immeasurably small (and net off to, literally, less than nothing because some people don't claim it).

This is a Good Benefit, it does not contribute to the poverty trap and the Tories froze it. And even if you never intend to have children, don't forget that your parents claimed it for you.

2. Child Tax Credits, which are a massive subsidy to 'single' mothers and are savagely means-tested. So they add to the poverty trap, exceed the 'cost' of having a child and are highly distortionary. Fraud, error and overpayments are absolutely massive and the system is hugely complicated.

This is a Bad Benefit and the Tories increased it for people at the bottom and intend to means test it even more savagely, thus worsening the poverty trap. Further, the children of those mothers who lived off Child Tax Credits are less likely to find work and pay tax (and hence repay it in future).

King Athelstan said...

Hi Trixy, I'm a married man with two kids and I despise all those ridiculous bungs, so I hope the government does get shot of them. More to the point benefits should be there to support people over the short term so they can focus on getting back to work, they don't. Instead they just keep the indolent squeezing out more and more brats.