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The Lord giveth and the Lord taketh away... 1

Fundraising | Niki May Young | 2 Sep 2010

"How will graduates afford to give?" asks Niki May Young who believes the Liberal Democrats' proposal for a graduate tax is a step too far.

In this case, the Lord is actually the Liberal Democrat party whose proposal for a graduate tax sees its hammer poised precariously over the final nail in the education coffin.

Despite a prevailing emphasis on the right for all to enter higher education, and the benefits that this reaps for civil society at large, the powers that be simply can’t resist having a pop at students. And frankly, sheeesh! I’m getting a bit tired of all of this tax business. Now, it may seem flippant but really, let's look at the figures.

As a middle-of-the-road earner in society, as most other university graduates will also be, I can sum up my monthly taxation as thus:

• 20 per cent out of the wage pot before I’ve touched it on income tax
• 12.8 per cent more in National Insurance (again) before I’ve touched it
• 6.5 per cent of what’s left for council tax
• 17.5 per cent VAT (up to 20 per cent in Jan 2011)
• And a tenner a month for road tax

So, now we’re at 56.8 per cent, plus the tenner for road tax. It’s a good job I don’t mind reducing my calorie intake!

I’ve not even started on how much debt a student can amass putting themselves through uni.

I feel for today's students, particularly those of humble backgrounds whose parents can’t afford to pay for their fees or help them through university, have to work while they’re studying – reducing their chance of a first class degree, are lumbered with student loans debts (which do, by the way, start charging interest from the moment you receive the first payment), and who could now face a shiny new tax bill to celebrate their achievement*.

But more importantly, for the sector at least, how will graduates ever afford to give if a graduate tax is added into the mix? I’m glad to hear CASE is at hand to raise the issue’s importance for the sector, and for universities themselves in particular. After investing so much in their own education, suffering years after their departure from university, a graduate tax could easily put graduates off the idea of investing in the education of future generations by donating to their former institutions.

Earlier this year Adrian Beney blogged about the rise in capital gains tax warning that it would not spell a boon for major donor philanthropy but quite the opposite. The coalition government has to find money somewhere, but we have to ensure that the sector does not suffer disproportionately. 

Niki May Young is website editor at Civil Society

* note  - if you believe what this article has to say, then being a modern student has further financial demands already.

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