College Fees: and the effect it may have on future earnings
In Budget 2012 the Government has announced that it is going to make an adjustment of 3.6 billion euro. Education is the 3rd Highest spending Government Department and the Government is considering increasing the student contribution.
However, the government will need to examine the effects this would have on government revenue in the future first. It is well
known that those who have a college degree can earn incomes in excess of those who do not. If fees are introduced then the numbers going to college will fall which will mean they will earn less and in turn this will result in a decrease in revenue for the government through tax returns etc.
From the economic perspective, making it harder for people to increase their skills and improve their qualifications at a time of deep recession will posssibly lead to more people dropping out of college and on to the dole, with few prospects for employment in the current climate. Therefore, is this such a smart move?
It has been proven that a "graduate tax" already exists. Over their lifetime, graduates of higher education pay an average of 70% more in income tax than non-graduates, simply because they have better, higher paying jobs than non-graduates. These increased revenues go towards funding everything from hospitals, police, roads, culture and of course education. Furthermore the more highly educated the workforce, the more attractive a country is to outside investors - bringing in more and more direct investment and improving the prospects of every Irish citizen.
It has been proven that a "graduate tax" already exists. Over their lifetime, graduates of higher education pay an average of 70% more in income tax than non-graduates, simply because they have better, higher paying jobs than non-graduates. These increased revenues go towards funding everything from hospitals, police, roads, culture and of course education. Furthermore the more highly educated the workforce, the more attractive a country is to outside investors - bringing in more and more direct investment and improving the prospects of every Irish citizen.
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