Logic fail

\”A full-blown graduate tax of say 5% on earning for the rest of your working life faces considerable opposition,\” a senior government source said. \”It creates an incentive for people to leave the country and study abroad.\”

No it doesn\’t you twat. It creates an incentive to get the education here for free then go abroad to work where you don\’t have to pay the tax. It also creates an incentive to come here from abroad for your education (for EU students must be treated the same way as domestic) for free and then bugger off back home.

Given that the problem is not enough money and too many people applying this really doesn\’t sound like a sensible solution at all.

4 thoughts on “Logic fail”

  1. If I said to an investor “lend me £30,000 and you can have 40% of anything I earn above the non-graduate median salary for the rest of my life, and I’ll repay the loan with interest” they’d jump at the deal. This is the current deal.

    If I said “give me £30,000 and you get 5% of everything I earn full stop” they’d bite my hand off. In fact, it’s such a good deal – and such a bad deal for me – that I’m strongly motivated take the £30,000 and then refuse to pay a penny.

  2. I reckon our membership of the EU is adding complication to this problem. Whatever we want to set in place to support our own students, has to be provided on the same basis for EU students. So if we dispensed with fees altogether, the taxpayer would be picking up the tab for our students, who could make some subsequent repayment through tax, but also for EU students, who would ordinarily make no such repayment.
    And because we teach in English, our tuition is more accessible and useful to the EU, than vice versa.

    Have I got that right?

    If so, how do the Scottish Universities get away with differential arrangements for Scottish and English students?

  3. Aren’t there different incentives depending on whether the person wants to live in the UK after graduation? I am assuming this tax is only payable if you get a British degree as opposed to any other EU degree. Is that right?

    For graduates who want to live in the UK after graduation, there will be an incentive to get a free degree elsewhere in the EU. This incentive will be the same for all EU nationals, not just British ones. Might not be a good thing for the UK universities (maybe diluting the quality of students), but overall, it seems a good thing for the UK – we get the educated workforce, another country pays for it, it takes a bit of the pressure off places.

    For graduates who don’t want to live in the UK after graduation, there is an incentive to get the education in the UK at the expense of the UK taxpayer and then disappear, as you suggest. Again, same for all EU nationals.

    I imagine the net effect will depend on which incentive has the greater pull.

    There will be a number of factors involved, including the willingness of British students to study elsewhere in Europe (e.g. due to language barriers) and the relative availability of jobs after graduation. Also, graduates often tend to like the bright lights of big cities like London, which adds to the mix.

  4. Senior government sources, almost by definition, are susceptible to senior moments, and I suspect that one of those led the source to say ‘study’ when he/she meant ‘work’. If there’s a twat involved, it’s probably the journalist who mindlessly copied the error. But I don’t know who that was because you don’t give a link. Moments all round, it seems.

Leave a Reply

Your email address will not be published. Required fields are marked *