Right Wing British politicians (The Tory party, the Labour party) argue that tuition fees are fair because graduates earn, on average, £100,000 more than non graduates, over their working life.
On an extra £100,000 they will pay £20,000 Tax (MINIMUM, assuming they never get into the higher tax bracket), £11,000 national insurance. Their employers will pay £12,000 over and above this £100,000 in Employer’s National Insurance. A total to the govenment of AT LEAST £43,000.
The graduate wil be left with £69,000. If of that money he spends just £30,000 extra over his life time on ‘luxury’ items (computers, TVs, cookers…) the Government will receive another £5,000 in VAT.
One assumes if a company pays extra, it expects extra profit, so they would pay tax on that (or investors pay tax on dividends). A well educated workforce makes the UK an attractive place for future high tech companies, thus bring jobs to the UK, thus garnering more tax.
The BBC reveal today that it is quite possible the cost of the student loan in interest, will be the same as the loan.
SO, to summerise.
Pay £30k+ in fees and loans, pay another £30k for interest, pay £37k in extra tax. Benefit the government with attracting employment to the UK, even though they have made no investment (because it’s a loan with interest, it costs them nothing), they will receive £50 grand or more, plus non-monetary, or knock on benfits.
Worth the £75 per year average the graduate will end up with.