Tax credits are a disguised form of welfare payment or social security. Fundamentally the government take money from people in taxes and gives them money in welfare. The two are totally different. So when Tony Blair’s New Labour introduced tax credits as a disguised welfare payment and spun it as a negative tax, a so-called “credit”, it seemed to many as a cynical political ploy. Brought in to confuse the issues and exploit the electorate. It was also condescending to struggling families not to be straight with them. People deserve a proper and affordable welfare safety net, not spin. The current government is trying to unpick the mixing-up of tax take and welfare giving. It is at least a bit more straightforward to end the disguised manipulation of both the tax and welfare systems.
Tax Barrister, Accountant