Brendan Burgess
Founder
- Messages
- 52,251
Is it reasonable to add back benefits when calculating an effective tax rate?
Not so sure its appropriate to include benefits received when looking at a tax payers affective rate ... surly CB is matched with expenses related to raising children?
I think that it is.
Tax is a straight payment from the tax payer to the Exchequer.
Child benefit is a straight payment back from the Exchequer to the tax payer.
Also, it is the practice of the OECD when doing comparisons to treat child benefit as a negative tax, so that fairer comparisons can be made with countries who provide tax credits for children instead of child benefit.
It's also important to highlight to people who complain about high taxes on middle earners that they get most or all of it back in benefits.
Brendan
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