A Life Time of Tax.
- Thread starter Rixter
- Start date
Not sure of the amount but here are some of the taxes:-
Airline departure tax
Airline Fuel Tax
Building Permit Tax
Cigarette Tax
Corporation Tax
Dog License Tax
Driving Permit Tax
Excise Taxes
Federal Income Tax
Fishing License Tax
Gasoline Tax ( too much per litre)
Health Tax
Liquor Tax
Luxury Car Tax
Medicare Levy
Personal Income Tax
Property Tax
Vehicle License Rego Tax
Vehicle Sales Tax (stamp Duty)
Watercraft Registration Tax
I have missed out hundreds I am sure, but don't forget the GST on top of all this lot.
Airline departure tax
Airline Fuel Tax
Building Permit Tax
Cigarette Tax
Corporation Tax
Dog License Tax
Driving Permit Tax
Excise Taxes
Federal Income Tax
Fishing License Tax
Gasoline Tax ( too much per litre)
Health Tax
Liquor Tax
Luxury Car Tax
Medicare Levy
Personal Income Tax
Property Tax
Vehicle License Rego Tax
Vehicle Sales Tax (stamp Duty)
Watercraft Registration Tax
I have missed out hundreds I am sure, but don't forget the GST on top of all this lot.
What's the average PAYE earn? No one knows any more.
What's an average job? two generations ago it was a clerk, teacher, tradie, nurse, shop assistant at Myers etc.
Now, an average job could be sitting at home on a laptop doing "office hours" and pulling in $300k. The average job doesn't exist.
You've got teachers earning around $60k - $200k, doctors around $100 - $500k, IT geeks on god knows what, and so on.
I'm no scholar, but just based on normal marginal rates, add in GST on everything, sales tax on every doodad you buy - I reckon it'd be at least 50% of whatever your income is - for life.
That's why I will only ever be a business owner first, PAYE second. Way better tax benefits. The sooner you are out of a PAYE world the better.
This is a bull***** thread. Everyday you live you are benefiting from your taxes.
Apart from the obvious middle class welfare payments, the fact that we are still free must be, in some small part, due to the fact that we have spent money on our defenses.
But are you saying that the single mum down the road gets more than her share? I probably drive more'n ten times the distance on sealed roads than she does. (edit: My lady drives a bit too and she is on a pension.
) And I'd bet that many mums here get a bucket load of child-care subsidies (But that's OK, it's middle class welfare).
In fact, without the great -ve gearing tax rort, this forum wouldn't exist.
Apart from the obvious middle class welfare payments, the fact that we are still free must be, in some small part, due to the fact that we have spent money on our defenses.
But are you saying that the single mum down the road gets more than her share? I probably drive more'n ten times the distance on sealed roads than she does. (edit: My lady drives a bit too and she is on a pension.
) And I'd bet that many mums here get a bucket load of child-care subsidies (But that's OK, it's middle class welfare).In fact, without the great -ve gearing tax rort, this forum wouldn't exist.
No you weren't:
The amount of income tax the average PAYE worker contributes to Canberra never to be seen again over a working life time
If turn 65 with wage $50k having worked for 50 years on an average wage. CPI 3%. Tax rate 30%.
Total tax ~ $400k
Total tax ~ $400k
30% flat tax,
over 50 years means you have worked 15 years for nothing....
sad thought.... who says we dont live in a prison?
Ice cube says it in his song, if you can interperate his lyrics...
http://au.youtube.com/watch?v=lc1Iiyav8_A
over 50 years means you have worked 15 years for nothing....
sad thought.... who says we dont live in a prison?
Ice cube says it in his song, if you can interperate his lyrics...
http://au.youtube.com/watch?v=lc1Iiyav8_A
That's right Nathan but only if you let yourself be the bunny... as you know it doesn't have to be that way. The choice sits with each one of us, as it should.
And Sunfish, I think you will find income tax is now a relatively small proportion of Commonwealth revenue... certainly compared to what it used to be. No need to feel you are depriving king and country - just providing public housing instead of paying tax - it's a good outcome for everyone. Govt gets more efficient public housing than it could provide itself, investors get to invest and renters get cheap accomodation.
And Sunfish, I think you will find income tax is now a relatively small proportion of Commonwealth revenue... certainly compared to what it used to be. No need to feel you are depriving king and country - just providing public housing instead of paying tax - it's a good outcome for everyone. Govt gets more efficient public housing than it could provide itself, investors get to invest and renters get cheap accomodation.
I'll have a go, but there is no way the average person starts work at age 15.
Let's assume they start work at 22 and retire at 65. We'll assume 3 years off work between this time to cater for children, further study, etc. Actually it's likely to be more given many work part-time, are unemployed or on compo etc. But we'll stick with 3 years.
So there's 40 years working life.
We'll also assume 2008 dollars. So there'll be no adding past incomes or discounting future incomes. Much simpler.
People's incomes peak between about age 40 and 55. But let's assume the person stays in a similar job and earns about $50k pa. That's an average over the course of the career (lower when they start, higher when income peaks around age 40 - 55).
Average income tax (assuming no investments) on that sort of income is about 20 - 25%. So they're coughing up $10 - 12k pa to Canberra.
Multiplied by 40 years, we're talking about $400 - 500k on earnings of around $2 million over a working life.
That's answered your question on income tax.
Of course there's other taxes like GST, stamp duty, council rates, beer tax, smokes tax, petrol tax, etc. Plus the compulsory super levy, so in practice they'll pay more. Half as much again as the income tax might be a reasonable starting point.
What about the 'never to be seen again' bit?
Now supposing they retire at 65, live until 80 and claim 15 years of age pension. Age pension plus various seniors benefits might be worth close to $20k pa (for a single person). Multiplied 15 years that's $300k and I haven't included very many health and pharmaceutical costs in that.
At the other stage of life, childcare, schools and universities (despite HECS) are not self-funding. Even private schools rely heavily on the government tit. So maybe another $100k there for age 3-22? But even that sounds low low as it's about $5k pa.
In the middle years there are other public services such as roads, rubbish, railways, sporting grounds, libraries, defence, police, tax breaks for investment etc. So add another few thousand per person per year, or $100k in the course of a lifetime.
All of a sudden we've balanced the budget. $500k taken off and $500k given back!
If you pay $1m in tax then you're probably earning more than someone who pays no tax. And while $500k tax is substantial, it's still smaller than the portfolio (say $1-2m) an ordinary earner can reasonably expect to build through prudent investing.
Peter
Peter what I mean is income tax paid & lost for ever , never to be claimed back upon. ie except work related expenses etc.
Hope this helps.
Yeah thats my estimate also.
