Tax Dependency
The UK is among the European countries that are most dependent on their taxpayers. It is usually the taxpayer that supports the economy of the state, however, countries such as the UK impose far more hardship on their working class when it comes to taxation of income. Furthermore, the various taxes added up to the household of a UK family is additionally burdening the financial well being of the population. And since more people are unemployed and more people rely on social benefits obtained through the taxpayers (that are reducing in number), the UK is gradually facing a problem that might endanger its financial stability for the upcoming years.
An example of how tax money are allocated can be found in education. Several years back job opportunities for students were posted on large format printing – nowadays the number of unemployed students keeps increasing.
Student employment is an indicator of how the tax system is indirectly affecting the sectors in the country. The chart above (Harper Adams University College) shows that most of the students are employed during their studies. However, the number of students seeking employment unsuccessfully also increases constantly. Thus, the less students are employed, the greater is the chance that governmental funding would be a main source for maintenance of these students – and this money is actually taxpayers money.
So there is a tendency in distribution of tax money and the less students work the more money from the taxpayers would be allocated to those willing to enroll in universities. Logically, the more people remain jobless, the more money would be allocated to social benefits and thus unemployment would bring deficiency of funds. When burdened with looking after a huge number of unemployed, the taxpayers would gradually start delivering more money towards maintaining some sort of lifestyle to unemployed rather than for the development of their country.
The conclusion: the UK needs to reconsider its financial politics and its tax system if it wants to maintain an economic and employment growth that would ensure steady and healthy economic recovery from the current recession.
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