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Dec 10, 2004



I remember when I was on a student allowance I got an effective 300% or so tax rate on a bit of extra money my partner earned (the reason for this is there is a cut off rate - above which your assistance drops dramatically).

I have to say, not being stupid and all, we put a stop to that pretty damn quick.


No-one cares they are killing initiative sage one. Labour will prevail because they survive on beneficiaries and creating dysfunctionality.


It's very simple if you tax at 39%, abate Family Support at 30% and Accommodation supplement at 25% - all on the same dollar - you are taking 94%. If the hapless taxee also has a child in tertiary education the parental means test on their student allowance takes it up to 119%, and then there's community service cards. It makes it all a bit meaningless to argue over whether ACC is a tax or a User-pays charge. The only thing that stops this problem being really widespread (apart from the fact that it isn't implemented yet) is that it's quite a performance to get Accommoation Supplement (It's bad enough just trying to find out how it works.) BTW I've just updated my paper on Basic Income/UMR to a 2008 base. I'll EMail you a copy.

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