The above clip from last night’s Question Time has been doing the rounds throughout the day and highlights the challenge facing minsters, particularly Osborne, over his budget tax credits move which is due to come into place in the next couple of months.
Comments
I actually agree with people who say that the taxpayer should not be subsidising her failing business. However, this actually proves one of the arguments me and other lefties have been making for years: the unemployment rate is artificially low, because there are quite literally HUNDREDS OF THOUSANDS of people who are just like this lady claiming they are "self-employed" when actually they are doing unproductive non-jobs. There simply aren't enough proper jobs to go round, just as there never is when a government pursues a right-wing laissez-faire economic policy.
If you say this woman is not doing a proper job (which, as I say, I would probably agree with). then the corollary of that argument is that the supposed "economic recovery" is a sham, because so much of that recovery is predicated on the supposed boom in self-employment.
Now, on to the Canadian elections...
She's a single mum with 4 kids. For decades they never went near a Jobcentre.
The colossal HB bill to private Landlords from the state must also be tackled along with tax credits though, and the unaffordable triple pension lock.
Our current expenditure can and should be cut alot more to "pay down the deficit".
Macbeth's soliloquy: If it were done when 'tis done, then 'twere well it were done quickly.
It may be best to smooth the transition but there is no point putting off the £12 billion in welfare consolidation that is needed and was voted for, for five years.
It's all about avoiding the benefit cap. The woman has to come up with 16 hours work because she has had four children and no doubt has a home with rent and council tax bill to match.
There are quite a lot of people around with bigger than average families who are in the same boat. Many do the bare minimum 16 hours work to escape the cap.
When you get Ken Clarke supporting Osborne and telling him to put his tin hat on and get on with it you begin to suspect the policy might be right and the outrage more than synthetic.
It strikes me the case this woman is putting forward is manufactured and the clever money will be on the set up behind her who put her forward.
As for landlords the budget did away with the notional allowances for repairs etc so now some properties might actually be properly maintained.
Laughably when this came out we had the inevitable backlash the other way and we were told that Tory landlords were revolting and protesting.
The amount of vacancies in the real economy (which are not THAT plentiful) will be snatched up long before the fake self-employeds have all got one.
Do you oppose or support cutting tax credits for people on low incomes with children?
All voters
Support: 22%
Oppose: 63%
2015 Tory voters
Support: 32%
Oppose: 50%
http://interactive.news.sky.com/2015/PDFs/summerbudget2015skydata.pdf
I'm putting together a spreadsheet that includes data on increased personal allowances, tax changes etc, and shows how tax credit cuts and pa thresholds have affected people/will affect people over the coming years. Happy to share the data when complete.
The economy is growing and real jobs are available. I do not see many Bulgarian nail emporiums being set up.
You PBTories can't have it both ways, you can't claim the lady is swindling the taxpayer with her business and should get a "proper job", then the next minute start citing employment statistics which regard the lady as precisely being in a "proper job".
If you say this woman is not doing a proper job (which, as I say, I would probably agree with). then the corollary of that argument is that the supposed "economic recovery" is a sham, because so much of that recovery is predicated on the supposed boom in self-employment. You are spot on there, Danny. I have business connections with a number of people in that position.Self employed, barely above the poverty line and without tax credits would pack up their businesses. Perfectly decent, hard working people who would love to make a decent wage without government help.
I will be discussing the effect of the cuts with them shortly. At the moment I do not think they know what is around the corner.
But Conservatives should not attack her either. After all, without knowing her exact circumstances, she may well be trying to improve her life by running a small business. Perhaps she is finding it difficult; perhaps she wants to expand but is running into problems.
Instead of attacking her, the government should be love-bombing her. They should be stressing the things they do to improve the lot of the small businessperson, and ask her what they can do to help her, and other strivers such as her.
If her story is not genuine, then it should become known. Until then, she may well be one of the tens of thousands who wants to improve her life by running a small business. True conservatives should be helping her, not screaming at her.
Q: Do you support or oppose paying tax credits (on top of their child benefit) to households with children with an income of £42,000?
(NB. Top 10% of households getting tax credits have an average income of £42,000).
If Osborne is going to make changes how about this for a simple one: No tax credits to any household with an income above £30,000. No ifs, no buts - if you earn over £30,000 and have children (however many) then you get your child benefit and that's it.
For the opposite answer ask "Should the government tax you less, rather than taking your money before giving some of it back via an inefficient and error-prone bureaucracy..?"
I still can't find any reliable numbers for how people are affected by the changes as a whole. Need data!
I wish her well, and admire her for voting Tory when it was well publicised that Tory policy was to cut the deficit and cut £12bn from the welfare bill. For future people like her however, and no matter how she is inclined to vote, the next controversy is limiting the child benefit to two children. What will you or anyone of us then say to women who go ahead and have 4 or more children?
If she is genuine, that is. Until I know otherwise, I would prefer to treat her as being genuine.
Your post does read, intentionally or not, as slightly nasty.
If I asked - "Do you support or oppose changing the tax system so that people on low incomes keep more of their own money?" I would get a similar response, despite both questions being basically the same.
We are nearly at full employment because that's the default rate for a healthy economy to be at. If every non-job was abolished overnight we'd revert back to full employment ultimately as we always will when growing trend towards full employment unless welfare or something else prevents it.
She did not complain in any way about the child benefit changes over £50,000, which does affect us.
As far as I can see, any income under £3850 results in zero change.
Children should not be an ATM.
https://twitter.com/JeremyCorbyn4PM/status/655103419074617344
From memory Cameron tried to pin this idea on Danny. The Tories honeymoon period well and truly over, with their nasty party credentials renewed and the EU civil war hasn't even got beyond the skirmish point !!
One question: what benefits would the state have been liable for, had someone in this lady's position had not gone into self-employment?
A single mother with 4 children is in an impossible position. It strikes me that self employment in a loss making enterprise is not a way forward and is not what tax credits were meant for. Perhaps a rational welfare system would support her and her children in a more transparent way. You can think what you like about me but sadly a life beholden to welfare is always going to be rotten, but by the time someone qualifies for the payments the damage is done.
I'll say what a working penalty is ... telling people that they should not work more than 16 hours a week or they'll be worse off and should be content with whatever the government is giving them and no more, that is a true working penalty and a devastating blow against social mobility.
The sooner the notion of working 16 hours a week and no more "as the jobcentre won't let me work more than 16" is history the better.
re: Working Penalty = Income Tax
Anecdotal evidence, I was once told by an employee that she could only work 16 hrs as her husband became unemployed. If she had worked 17 then he couldn't sign on and they couldn't claim housing benefit. They were literally hundreds of pounds a week better off by her working fewer hours. It's complete madness!!!
I expect a U Turn to limit the losses in first couple of years.
Incidently I agree long term that it is the right thing to do to get rid of the taxpayer subsidy to shite employers
An eager Eastern European will be happy to take up the slack, and the job.
There are many who wish to work more than 16 hours, and should be allowed to do so without losing out, but there are also those wantonly milking the system whilst using this as an excuse.
@paulhutcheon: Alex Salmond Claims He Has Seen Evidence That Ghosts Exist http://t.co/q0ugUUubqB via @JamieRoss7 @BuzzFeedUK
It is a shame I grant you that labour's inheritance left the housing market in ruins.
https://twitter.com/iainmacwhirter/status/655062455077478400
Politicians of various hues have created a tangled mess of interlocking benefits, credits, taxes, student welfare and goodness knows what else. Their interactions are complex and unpredictable, and in many cases totally capricious when you cross one threshold or another. The situation is made far worse by some things being assessed on a personal level, others on a total household level, some with regard to the presence of a certain type of person in the household (e.g. if you have a granny in your annexe, the whole lot of you avoid the licence fee), and some with regard to partner's earnings. You'd have to model a couple of hundred - perhaps even a few thousand - "feasible household scenarios" to see all the plausible permutations.
At least for its intellectual and bureaucratic parsimony and obvious "fairness", there's something very strong to be said for the universal basic income.
Completely different kettle of fish to B Tax when you are pretending to be the new party for said strivers IMO
@BethRigby: Verbal complaint made after Mr Yentob personally called Ed Stourton of #wato to discuss the report on #KidsCo shortly before broadcast.
You hold that back & announce it at the Autumn Statement - should lance the boil of opposition.
Easy to do - regardless of what his reforms were there was going to be an intensively negative response, so you can anticipate and plan accordingly
There is not much unemployment (only 7000 in Leicester for example) but there is a lot of underemployment. This at least makes it easier to move to other employment. If this person is working full time yet taking home only £150 per week then her small business is one of the many that are not viable. Her skills may well be transferrable though and even on minimum wage she should do better working for someone else. Grafters are always employable, bludgers less so.
IFS seem to agree with this scale of losses.
In a way I hope it goes through in the same way as I felt about Poll Tax.
Anyway early to bed for me off for a ride up Serrle Carlisle and round Cumbrian Coast on class 37 from 5.30am
Tax credits are imperfect - sadly, they apply only to people who work in a cynical fit of tabloid pandering and politics - rather than acting as a minimum income, as supported by, amongst others, Friedman and Hayek. Even so, it was a huge step in the right direction.
Of course, the modern right does not remotely care about the poor. They care more about the principle of 'state dependency' than people suffering. The right fundamentally does not see inequality as a problem, they see as a desirable natural outcome, as a fundamnetla part of social darwinism, not least because it helps entrench a servile underclass with few options and opportunities. Indeed, it's not a coincidence there are so many monarchists on the right despite the apparent contradictions involved with oft-repeated myopic nonsense like "equality of opportunity" and "meritocracy".
Equally there should be a wider economic benefit to an economy that is living within its means and able to properly spend on the investment we need and allow more money to remain in workers pockets in after tax.
The whole issue of this thread header is about weaning people off bogus benefits and into real jobs.
The Universal Basic Income is a sound idea, it would eliminate massive bureaucracy and be roughly cost neutral at say £1,000 a month for everyone over 18 (c. £500bn) or a bit less. I did suggest on the previous thread though that it can't work for an EU country if 300m people could claim it! The other danger is that the annual increase in it becomes more political than anything right now, as at election time the politician promising to raise it the most appeals to literally everyone. Imagine how 2005 Gordon Brown would have reacted under that system!
The greatest shame that the last labour govt inflicted was to park people on benefits, losing interest in them other than as voter fodder, whilst funnelling hundreds of thousands of new EU entrants into the very jobs they the claimants needed to be occupying.
It would be really strange if those reforms actually do get pushed through by a Conservative government with a tiny majority. Obviously they'll be different reforms, but it'll still be a considerable achievement.
It is important that higher wages and less tax credits are introduced at the same time with a neutral impact (especially for the worst off)
If not its toxic.
Off to dream of class 37s
Scandanavian levels of bdnefit require Scandanavian levels of tax. The Labour party wants to pretend it can be achieved by a tax on monocles and spats, but really it would require 5-10p on the basic rate of income tax. If they were honest they would make that case, but they do not.
Borrowing to finance current expenditure is just a tax deferred, a tax on children.
Enjoy your ride. Lovely day for it.
But in the meantime it is iniquitous that one generation should suffer the disadvantages of inflated house prices and be unable to buy.
Provided, therefore, that it is *strictly temporary* help to buy may act to reduce intergenerational unfairness
And with that, time to close eyes. Past midnight here and getting up early to go and watch the final day of the most boring test match in living memory!
I honestly believe in the goodness of people and that people who are responsible are able to see these irresponsible people and make up their own minds about them rather than having an agenda spoonfed to them by the BBC.
Finally, from reading a bit more about this woman, she doesn't stand to lose directly from the changes since her business makes no money, apparently she is going to lose because the WTC changes will affect other mothers in her area who will no longer spend money on having their nails done. Sounds to me like she does a lot of under the table cash trade.
And you it's terribly gauche to boast about your wealth.
No, Labour have no interest in reforming the benefits system and encouraging people to take on more work and responsibility over their own lives, it lessens the impulsion to vote for Labour. Brown created this mess to ensure a client vote, look at 2010, the campaign was based on the Tories axing in work and child benefits, it allowed them to limit a lot of the damage.