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Graduates may lose up to half of income on taxes
Tuesday, 30 October 2007
Life after graduation
The government's tax policies mean that graduates face losing nearly half their income on taxes and loan repayments from their time in university, according to a new report published today (October 30th).
Independent think-tank Reform claims that by 2012 graduates will have to deal with an effective tax burden, including payments on higher education and pensions, of 49.1 per cent.
And the report calls on the government to introduce targeted tax reductions to benefit university leavers as they enter graduate careers, claiming its current policies are turning the 18-34 age group into the IPOD (Insecure, Pressurised, Over-taxed and Debt-ridden) generation.
Andrew Haldenby, director of Reform, said: "The Government fails to face the facts: high taxation and high public spending impose massive burdens upon both young people and the economy.
"The rest of the world has outlined a better approach; an approach which will finally liberate the IPOD generation," he added.
Scottish university leavers entering the graduate recruitment market benefited earlier this year from the Scottish Executive's decision to scrap the endowment fee tax of over £2,000 paid by all students on graduation.