Comment Re:Governments are main Reason (Score 1) 538
Compared to the "golden age" which many people think of in terms of UK university education, there's not much difference.
There is a huge difference! The "graduate tax" as you call it is independent of your salary. A teacher who earns not much more than £25k/year will be paying off the loan for much of their career whereas some investment banker in the city will probably pay it off in the first year or two and barely notice the effect. Worse, because the teacher takes longer to pay it off they pay more because interest accumulates on the loan.
This has none of the typical traits of a real tax. Taxes on income are almost always percentage based so that those who earn more pay more. In addition the rate is usually, but not always, progressive so that the rate on income above a certain amount is taxed at a higher percentage rate. Were this funded by a graduate tax then you would expect the high earning investment banker to pay far more in tax than the poorer teacher whereas in fact the exact opposite is the case due to the interest!
The end result is that loans provide an massive financial disincentive to work in low paid but essential professions such as teaching, nursing, the police etc. and encourage people to go into more lucrative professions. Worse loans, unlike grants, also makes the investment banker think that s/he got there all by themselves with no help from the government. Give them a free education and they will have received something valuable from the state which was paid for by taxes and so they are less likely to complain about paying tax in the future because they can see that everyone in society benefits from it.