High Income Child Benefit Charge Proposal
The High Income Child Benefit Charge (the Charge) has come in for very considerable criticism from the time of its introduction in 2012 to today. The major issue is the high level of marginal rates of tax, in particular for large families, as the benefit is progressively withdrawn through the tax system. This is now affecting many more families as the threshold has not been indexed at a time of high inflation.
In this paper we make a proposal seeking to make the position fairer which would not compromise the principle of independent taxation in any way at all.