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I doubt it's over. Maybe it's over till Jan 31, the date of the Queensland election.
We've had governments for the last 5 years talking about 'return to surplus', and Abbott was elected partly becuse Australia believed he could do it. The media bangs on about it, people debate how 'the economy is stuffed'. But now that the government is trying to actually implement some price signals and savings they are the worst in the world. The reality is that in Australia only about the top 20% really contribute (in economic terms). That, simply, isn't enough people.
It's very easy to protest and pontificate, but the reality is that we need fewer people consuming free services and less of a welfare mentality. It will probably make me unpopular, but I think the analogy of 'lifters and leaners' is very apt.
We've had governments for the last 5 years talking about 'return to surplus', and Abbott was elected partly becuse Australia believed he could do it. The media bangs on about it, people debate how 'the economy is stuffed'. But now that the government is trying to actually implement some price signals and savings they are the worst in the world. The reality is that in Australia only about the top 20% really contribute (in economic terms). That, simply, isn't enough people.
It's very easy to protest and pontificate, but the reality is that we need fewer people consuming free services and less of a welfare mentality. It will probably make me unpopular, but I think the analogy of 'lifters and leaners' is very apt.
We've had governments for the last 5 years talking about 'return to surplus', and Abbott was elected partly becuse Australia believed he could do it. The media bangs on about it, people debate how 'the economy is stuffed'. But now that the government is trying to actually implement some price signals and savings they are the worst in the world. The reality is that in Australia only about the top 20% really contribute (in economic terms). That, simply, isn't enough people.
It's very easy to protest and pontificate, but the reality is that we need fewer people consuming free services and less of a welfare mentality. It will probably make me unpopular, but I think the analogy of 'lifters and leaners' is very apt.
VYBerlina, I understand where you are coming from but could you clarify what you mean when you say that 'in Australia only about the top 20% really contribute (in economic terms).'
Thanks for the link and reference to the article in The Australian. I read most of it.
Just to clarify and summarise, is it saying that only households who earn an income of 200K a year are 'lifters' and those who earn below 200k a year are 'leaners'?
I have read the article carefully, Francesco.
The article is only analysing one part of the pie on its own - 45% of revenue that comes from personal income tax - therefore overstating the contribution of the top 20%
Quote
"The distribution of personal income tax - the federal government?s biggest source of revenue, raising about 45 per cent of the total ($165 billion this year)"
There is an entire chunk revenue - 55% of 165 billion - which probably comes mostly from corporate tax (which the middle class and working class contribute to in terms of working productivity) - that is missing from the analysis and not factored in
There is a disingenuousness about an article that disregards 55% of government of revenue in the analysis
So it only looks as if people on 200k a year are lifting the other 4/5ths of Australia
The amount of 'lifting' the top 20% do (those who earn 200k and more a year) therefore may not be as much as the article makes them out to be,
considering it left out 55% of revenue in the analysis
And it's over... at least this will save lives
The government is looking silly. They have backed off reforms to the Racial Discrimination Act, backing off the PPL they took to the election, backing down on indexing HECS etc. They are starting too look like Rudd backing down on action on climate change after claiming that climate change is the biggest moral issue of our time.
It seems as though the electorate tossed out Kevin Rudd and installed his coalition equivalent in Tony Abbott. So much political capital has been burned with little to show for it.
Fence, did you actually read the article from The Australian?
It is effectively demonizing anyone on less than 200k a year, (80% of Australia) and saying that these 'bottom' 6.9 million households received more in cash welfare and services than they paid in.
Implication: -
200K and above - lifters
Below 200K - LEANERS
The premise of the article - analysing only 45% of revenue (personal income tax) and excluding 55% of revenue (Govt total revenue = 165 billion) thus artificially magnifying the % of the contribution of personal income tax paid by the top 20%. The writer is taking the total amount those on 200K plus contributed and dividing it by a smaller denominator (45% of revenue - personal income tax) rather than the whole pie (45% + 55%). 55% of revenue received by the govt is the whole chunk missing from the denominator.
Goes back to old adage - "there are lies, damn lies and statistics"
http://www.theaustralian.com.au/nat...841174461?nk=79687ac51d0bef70b98c564a2bdcfc93
"Only the top fifth of households ranked by their income - those with incomes of more than $200,000 a year in the financial year ending June 2012 - pay anything into the system net of the value of social security in cash and kind received, according to data from the latest Australian Bureau of Statistics survey of household income....
The bottom 6.9 million households, while often incurring income tax liabilities and regularly paying GST, received more in cash welfare and services than they paid in."