NUS Unveil Graduate Tax Proposal

Fri, 19 Jun 2009

New proposals to replace university top-up fees with graduate tax have been announced by the National Union of Students (NUS).

The NUS has called UK graduates to contribute to their education once they have found employment, instead of paying annual university fees .

Under the proposals set out, the highest earning university leavers would pay the most money, while graduates on lowered wages would pay less - or nothing at all.

The NUS explained: "The total contribution a person makes would be linked to the benefit they obtain from higher education over a longer period, leading to a much higher total contribution from very high earners."

According to the group, the top fifth of earners would have to pay 2.5 per cent of their salary, which is equivalent to an average of £125 a month, while the bottom fifth would fork out just 0.3 per cent of their income - around £5 a month.

Graduates earning less than £15,000 a year would be exempt from the tax .

Recent figures from the Incomes Data Services show most companies are set to increase their graduate wages by 0.5 per cent this year, with salaries starting at around £24,500.
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