Saturday, October 09, 2010

Better than a Graduate Tax

Mr Cable has announced that he has considered and is not in favour of a 'pure' graduate tax. There's nothing pure about penalising people for having gone into higher education. Even student loans, if they could be organised well, would be better than sending out the message that someone should be charged for life for having taken the opportunity of the education society has to offer.

There is, indeed, a better solution than graduate tax. And it is obvious. The average income of graduates is higher than the national average income. So, a truly progressive income tax system would introduce a rate intermediate between our standard and higher at the point, or just above, where that graduate average is. Yes, it would catch everybody who earns that income, not just graduates and that's precisely how it should be: a civilised society can't argue that it is a virtue not be educated. It's about time Britain realised that what society needs is not a graduate tax but a graduated tax.

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