Parliamentary alumni tax
The argument for a Parliamentary Alumni Tax.
Some politicians and parties think that university graduates should pay a ‘graduate tax’, during their working lives once their salary reaches a certain amount after their studies. After all, their above-average salaries are in some part enabled thought the provision of tax-payer subsidised higher education.
This is an area where politicians can lead by example. Former MPs and Government ministers in particular can see their income multiply after leaving office through selling their memoirs, accepting paid speaking engagements and taking up Company Directorships, frequently in industries they previously regulated. These are all examples of income that is largely made possible through connections made and experience gained in roles paid for wholly by the tax-payer. Using the rationale of the University Graduate Tax, former MPs and Government Ministers should pay a ‘Parliamentary Alumni Tax’. It could be simply be calculated based on the percentage increase in their income after leaving public office, compared to their previous role in the private sector. For career politicians, the national average salary could be taken as the reference point. This way they would be able to demonstrate their commitment to public service and appreciation of their tax-payer-boosted income.