From Hansard this Thursday:
Low Income Households
Sir Peter Viggers: To ask the Chancellor of the Exchequer what estimate he has made of the amount of tax paid by low income households in the last 12 months.
Jane Kennedy: A single earner family with two children on half male average earnings pays no net tax in 2008-09, as tax credits and child benefit more than offset income tax and national insurance liabilities.
I have to ask: If the millions of people that Jane's answer refers to actually get as much, or more money back from the Government than they are paying in tax in the first place, then why are they paying tax? Surely we are wasting God knows how much money taking tax from these low earners, only to give it back to them in credits. Are they supposed to feel grateful to the government for handouts of their own money? Take them out of the tax system and save us all some money.