Stephen Balme, is begging – please government tax me more:
I’m writing here today with a most unusual of requests: Can those in charge please charge me more tax? . . .
We didn’t have much in the way of direct tax cuts this budget, but we did have them earlier on during what was frequently referred to as a global financial crisis.
So, please, charge me more tax.
Who am I to make such a bold, selfless declaration?
I’m a male. I’m 28. I rent. I have a car. I have been in the workforce for three years. Prior to that I attended Otago University where I earned two degrees and a student loan of $37,000.
And finally we get to the crux of my submission.
When I graduated university, my income more than tripled over the money provided to me by my weekly student loan payments, but expenses remained exactly the same.
I have no family to support, very few bills to pay, and ultimately am in a golden age of disposable income that cannot possibly last.
This comfortable life I currently have is only made possible through the generosity of a student loan.
So, please, please start charging interest on my loan.
It’s basic economics to see that the longer I drag out my repayments the less the loan costs in real world terms (thank you inflation).
It seems fairly clear to me that this is an unsustainable cost. You could charge a set fee every year so the mental picture of free money in the eyes of new students is gone.
Adding interest at the rate of inflation is just too obvious to bother discussing all the pros, but once again, I would be willing to pay more than that to assist the future. . .
Interest-free student loans do provide an incentive for people to pay them off no faster than the minimum required, but there is no upper limit on the amount anyone can pay off a student loan.
He could pay his off much faster, he could pay it all off at once if he had enough money.
What’s stopping him?
He doesn’t need to wait for the government to take more from him.