So Pete, is her intent to tran, or put em back on ebay for a higher price?
Opps I meant to say Training Pants (toilet training), Peter
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So Pete, is her intent to tran, or put em back on ebay for a higher price?
I'm in substantial agreement with Mark, though the reasons may be different.PAYE is a progressive tax - the more you earn the more you pay. Call it highway robbery (if you're a high-earner), but it is an established and accepted practice in taxation.
GST on the other hand is, theoretically, a regressive tax because higher earning households do not have to spend as much of their income on the essentials of life (food, clothing and shelter).
with talk of a 9-10 billion dollar surplus this year (which im sure will feature prominently in a liberal election campaign), do we really need to raise any tax?
i'll be the first to admit i dont quite understand the economics of this rebalancing. does gst go to the states?
I'm in substantial agreement with Mark, though the reasons may be different.
Actually, they're the same.
I say it again (for those who appear to have trouble comprehending social equity issues).
Reducing PAYE tax rates in favour of a higher GST will shift the tax burden in Australia from those who can most afford it, to those who least afford it..
I think it's greed.
M
For what it is worth, I would like to see no income tax at all but a tax on all spending, even though this does not benefit accountants at all.
A hundred or so years ago there was this Economist called Henry George.
He become very famous (his website claims that at one time, the only people in the US more famous than him were the President of the time - Thomas Edison - and Mark Twain).
Indeed when he visited Australia he was greeted by thousands of well wishes and supporters in Sydney (and yes he was an Economist).
What made him so famous (and so popular)?
He proposed abolishing all forms of tax save for a tax on land. Effectively, were such a tax to be introduced it would socialise land values - not too dissimiliar a concept to land being communalised. (a very brief description).
Though he may not exactly be a household name these days, the fact that Henry George Societies still exist in the US, Australia and other parts of the world are testament to the longevity and popularity of his ideas.
Mark
FYI - http://www.henrygeorge.org/
You may (or may not) be surprised to hear that it isn't a new idea (at least in terms of scrapping income tax).
It would have been interesting to see what may have happened if George and Nulty had been given a chance to implement their ideas, instead of what we ended up with.
We did implement them. It is still around. It is called Land Tax.
Land Tax was specifically set up to force wealthy land owners to sell off thier holding to others to allow equity. It worked well.
BUT It is now a remanant tax used by States to hit up some investors. Ineffiecnet, messing with fundamentals.
Peter 14.7
The labour government wants a higher GST while rolling back income tax because they know that bracket creep will get them later on anyway.
Back on 1970 the age brackets may have been as so:
OK, so in 1976 (when I started work), as a wage earner, I paid my taxes. I was a part of that 60% paying taxes.
Children not paying income tax 20%,
Employees Paying Income tax 60%,
Aged Pensioner not working not paying income tax say 20%.
So we have 20% 60% 20%.
The 60% providing services for the other 40%,
But in 2007 as the population ages (that is we have more older people living as a % than in 1970) the mix is probably more like this.
Children not paying income tax 20%,
Employees Paying Income tax 50%,
Aged Pensioner not working not paying income tax say 30%.
So we have 20% 50% 30%.
So now 50% are provided services for 50%. So we are getting less tax because there are less to tax pro-rata and then aged section of 30% is growing each year.