Truth is his name

Who is to say who is right or wrong when only god is perfect?

If there is one thing that I hate doing, it is admitting when I am wrong. I am comfortable compiling my finances; I can visit the dentist without fear; doing the household laundry and other domestic chores can even be positively euphoric; but, admitting when I am wrong is something that I deplore and what is more, I just can’t seem to do it as often as I should.

As a teenager, I gained something of a reputation for endlessly questioning my friends, family and peers. I just couldn’t let go of a topic that I felt inclined to know about (which happened to be just about everything!) Relentlessly, I would hound somebody as to their opinion or experience.

This in itself was fairly harmless as I had always been taught that an inquisitive nature was the very essence of learning. However, it was the manner in which I would counteract during a conversation that led to my notoriety. To share your own opinions is tolerable, but I tended to declare my own thoughts as absolute fact.

I would take a stand on a point in question and unequivocally deride others (whom I now viewed as opponents) pressing them into submission. As if that wasn’t ghastly enough, I often found myself in a position where I needed to expand my argument further, but could not as I had already limited myself when making earlier assertions!

Admitting that perhaps I had gone too far or that I had hastily made statements was tantamount to admitting defeat and I just couldn’t admit that I was wrong. With age comes wisdom and over the years I have become a better conversationalist, but the agony in admitting I may have erred remains. I often wonder why this is. Is it as simple as the stubbornness of male-pride? Or is there some part of my personality that craves confrontation? I continue to ask these questions of myself, but have already found satisfaction from the philosophy of the Sikh way of life.

Guru Nanak espoused that there is only One absolute: God. Sikhs do not think of God as a being or deity, rather we believe that God is the very fabric of all existence: The Guru said Truth is His Name. It follows that beyond this absolute, unique perfect Divinity, everything else is not without flaw. It is comforting to know that we are not perfect.

To truly believe and practice the principle that only God is perfect is humbling. It helps us to refrain from the idea that we cannot be wrong. And yet we find ourselves in that position every day because we spend our time looking at the rest of the world who like us are imperfect. If they are imperfect too, who is to say that I am wrong and they are right? Perhaps I am right and they are wrong! It is this type of thinking that I believe has led me to hate admitting when I am wrong, a belief that perhaps I could be right!

This is why the Sikh way of life emphasises the greater importance of practising an ideal. Guru Nanak declared that “Truth is the highest virtue, but higher still is Truthful living.” We recognise that we are imperfect, but when we are put to the test and should accept that we could or have been wrong we fail to follow through. Sikhs believe that everything exists at the whim of the single Creator & Destroyer. That entity alone is responsible for life and death, for war and peace. Sikh philosophy dictates that our energy is better focused on that entity and to not get caught up in the petty squabbles of the World. Guru Nanak said that in life we should be like the lotus flower, floating within the water but not becoming sullied by the murky depths: to live within the World and embrace it whole, to attempt to resolve society’s problems and enhance the spirit of its people. But we should not allow ourselves to become embroiled or overcome by the differences that exist. Truly, it is human to err, but I would like to take licence with the idiom and add that to admit when one is wrong is also divine.

Harwinder Singh is a 26-year-old Law graduate turned film and TV producer. He is also a record label boss. Born in the UK to Punjabi parents, he been practising and studying the Sikh Way of Life for about 20 years.
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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.