Tuesday, 13 February 2007

Taxation is the way to fund higher education

The government is said to be keen to enourage past students to donate to their universities in order to boost the drastic shortfall in higher education funding. Gordon Brown is even thought to be willing to donate £1 for every £2 pledged by the public.

Not a bad idea but it's still letting the majority of top earners off the hook.

The reason Tony Blair gave for charging today's students top up fees is that their degree will ensure they earn far more than people without such a qualification. That in itself is questionable, especially if he reaches his target of 50 per cent of school leavers going on to uni.

But it was true in the past and there are thousands of people who benefitted from FREE university education who are now earning big salaries. They should be contributing more towards the next generation's education and the only way to ensure they do is meaningful progressive taxation.

If it is important to Britain's economy and well-being that more and more people go to university, the state should pay and raise the money by increasing taxes, especially on the highest earners. That way each generation helps the next and the bill is picked up by those who benefit most.

Our current system is, in reality, an extra tax on young people as soon as they earn £15,000 a year and will come at just the time they are trying to make their way in the world and many will be looking to raise enough money to get their first step on the property ladder. Meanwhile, those whose free university education helped put them in the £100,000 pa bracket get away with no extra contribution.

Saltaire Sam

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