Quote:
Originally Posted by nomadking
Labour brought in the tax credits system with the deliberate intention of increasing benefits. The public borrowing started up around that time. It is that excessive amount paid out in tax credits that has to be corrected. The problem is that there will be a lot of squealing if that is done.
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Tax credits were introduced in 1999. Our debt to GDP ratio continued to fall until 2003, and even after that the current budget was still in balance for a time after 2003 with the borrowing being soaked up by capital expenditure.
Tax credits were introduced for a similar reason to the minimum wage - an attempt to arrest the increase in the UK's GINI coefficient and subsidise lower paid work to reduce reliance on out of work welfare. Google GINI it if you don't know what that is, but given you're so certain it was just about building a client state I won't hold my breath.
Try not to let facts get in the way of a nice rant.