The US Presidential Debate Domestic Policy Drinking Game

A fun way to enjoy the first presidential debate.

Obviously, the New Statesman doesn't advocate drinking in your place of work, or at all. (It also disapproves of dancing, and "that modern music".) You might perhaps enjoy this game with lemonade or water, or a refreshing iced tea. Over to Nicky:

As has become traditional, both parties are downplaying their chances of victory before debate night tonight. Romney has the easier job of this one. Obama's intimidating skills as a rhetorician helped him against McCain when he was an upstart candidate, but he needs to be careful; low expectations of Romney might trip the president up. He has to be amazing to maintain expectations, while all Romney has to do is not screw up to exceed them. That said, Romney is trailing in the polls, so he might go for broke tonight, which would be deeply entertaining – but if he doesn't try anything crazy, here's the New Statesman's Domestic Policy Debate Drinking Game to play.

The rules:

First, choose your candidate – or try to play with both if you haven't got work tomorrow.

There are several keywords to start you off: take a big swig when you hear them from your candidate. Romney's drink-on-hearing words are “deficit”, “gas prices” and “debt”. Obama's are “General Motors”, “college tuition”, and “investment.”

Both will be talking about “jobs” an awful lot, so this should only be a drink-word if you want to get really, seriously drunk.

A few set-pieces next: these are for everyone. Any time either candidate tells an anecdote in which they met someone specific, everyone must shout “Joe the Plumber!” and finish their drinks.

Any mention of the secret video filmed of Mitt Romney earlier this year – even a hint at its contents – everyone must down just over half of their remaining drinks and throw the last 47 per cent away. (See what we did there?)

If Obama talks about his childhood or youth, take a gulp from the drink of the person on your left. If Romney does the same, take a gulp from the drink of the person on your right. If either candidate mentions the word “freedom”, everyone high-fives.

Finally, verbal habits of each candidate. If one of them happens, everyone must repeat it out loud, and take a sip. For Obama, every time he says “my opponent” or “let me be clear”; you drink. Any time he makes a list of three on a rising cadence everyone must shout “three!” and drink.

For Romney, every time he refers to the audience as “my friends,” or laughs awkwardly, you drink. Every time he asks a rhetorical question and then says “I'll tell you why,” or “I'll tell you the answer,” you drink whether he then goes on to do so or not.

Nicky Woolf will be live-blogging the debate from 1am BST. He will not be drinking (right, Nicky?)

Obama and Romney on a T-shirt. Photograph: Getty Images

Nicky Woolf is reporting for the New Statesman from the US. He tweets @NickyWoolf.

Show Hide image

Q&A: What are tax credits and how do they work?

All you need to know about the government's plan to cut tax credits.

What are tax credits?

Tax credits are payments made regularly by the state into bank accounts to support families with children, or those who are in low-paid jobs. There are two types of tax credit: the working tax credit and the child tax credit.

What are they for?

To redistribute income to those less able to get by, or to provide for their children, on what they earn.

Are they similar to tax relief?

No. They don’t have much to do with tax. They’re more of a welfare thing. You don’t need to be a taxpayer to receive tax credits. It’s just that, unlike other benefits, they are based on the tax year and paid via the tax office.

Who is eligible?

Anyone aged over 16 (for child tax credits) and over 25 (for working tax credits) who normally lives in the UK can apply for them, depending on their income, the hours they work, whether they have a disability, and whether they pay for childcare.

What are their circumstances?

The more you earn, the less you are likely to receive. Single claimants must work at least 16 hours a week. Let’s take a full-time worker: if you work at least 30 hours a week, you are generally eligible for working tax credits if you earn less than £13,253 a year (if you’re single and don’t have children), or less than £18,023 (jointly as part of a couple without children but working at least 30 hours a week).

And for families?

A family with children and an income below about £32,200 can claim child tax credit. It used to be that the more children you have, the more you are eligible to receive – but George Osborne in his most recent Budget has limited child tax credit to two children.

How much money do you receive?

Again, this depends on your circumstances. The basic payment for a single claimant, or a joint claim by a couple, of working tax credits is £1,940 for the tax year. You can then receive extra, depending on your circumstances. For example, single parents can receive up to an additional £2,010, on top of the basic £1,940 payment; people who work more than 30 hours a week can receive up to an extra £810; and disabled workers up to £2,970. The average award of tax credit is £6,340 per year. Child tax credit claimants get £545 per year as a flat payment, plus £2,780 per child.

How many people claim tax credits?

About 4.5m people – the vast majority of these people (around 4m) have children.

How much does it cost the taxpayer?

The estimation is that they will cost the government £30bn in April 2015/16. That’s around 14 per cent of the £220bn welfare budget, which the Tories have pledged to cut by £12bn.

Who introduced this system?

New Labour. Gordon Brown, when he was Chancellor, developed tax credits in his first term. The system as we know it was established in April 2003.

Why did they do this?

To lift working people out of poverty, and to remove the disincentives to work believed to have been inculcated by welfare. The tax credit system made it more attractive for people depending on benefits to work, and gave those in low-paid jobs a helping hand.

Did it work?

Yes. Tax credits’ biggest achievement was lifting a record number of children out of poverty since the war. The proportion of children living below the poverty line fell from 35 per cent in 1998/9 to 19 per cent in 2012/13.

So what’s the problem?

Well, it’s a bit of a weird system in that it lets companies pay wages that are too low to live on without the state supplementing them. Many also criticise tax credits for allowing the minimum wage – also brought in by New Labour – to stagnate (ie. not keep up with the rate of inflation). David Cameron has called the system of taxing low earners and then handing them some money back via tax credits a “ridiculous merry-go-round”.

Then it’s a good thing to scrap them?

It would be fine if all those low earners and families struggling to get by would be given support in place of tax credits – a living wage, for example.

And that’s why the Tories are introducing a living wage...

That’s what they call it. But it’s not. The Chancellor announced in his most recent Budget a new minimum wage of £7.20 an hour for over-25s, rising to £9 by 2020. He called this the “national living wage” – it’s not, because the current living wage (which is calculated by the Living Wage Foundation, and currently non-compulsory) is already £9.15 in London and £7.85 in the rest of the country.

Will people be better off?

No. Quite the reverse. The IFS has said this slightly higher national minimum wage will not compensate working families who will be subjected to tax credit cuts; it is arithmetically impossible. The IFS director, Paul Johnson, commented: “Unequivocally, tax credit recipients in work will be made worse off by the measures in the Budget on average.” It has been calculated that 3.2m low-paid workers will have their pay packets cut by an average of £1,350 a year.

Could the government change its policy to avoid this?

The Prime Minister and his frontbenchers have been pretty stubborn about pushing on with the plan. In spite of criticism from all angles – the IFS, campaigners, Labour, The Sun – Cameron has ruled out a review of the policy in the Autumn Statement, which is on 25 November. But there is an alternative. The chair of parliament’s Work & Pensions Select Committee and Labour MP Frank Field has proposed what he calls a “cost neutral” tweak to the tax credit cuts.

How would this alternative work?

Currently, if your income is less than £6,420, you will receive the maximum amount of tax credits. That threshold is called the gross income threshold. Field wants to introduce a second gross income threshold of £13,100 (what you earn if you work 35 hours a week on minimum wage). Those earning a salary between those two thresholds would have their tax credits reduced at a slower rate on whatever they earn above £6,420 up to £13,100. The percentage of what you earn above the basic threshold that is deducted from your tax credits is called the taper rate, and it is currently at 41 per cent. In contrast to this plan, the Tories want to halve the income threshold to £3,850 a year and increase the taper rate to 48 per cent once you hit that threshold, which basically means you lose more tax credits, faster, the more you earn.

When will the tax credit cuts come in?

They will be imposed from April next year, barring a u-turn.

Anoosh Chakelian is deputy web editor at the New Statesman.