RB wrote:Jimmy_041 wrote:RB wrote:I'd be interested to see the report you are referring to.
Removing deductions would not raise taxable incomes in Australia (i.e. and offset the lower tax rates) by as much as you think.
I appreciate that you had to pick numbers essentially at random for the purpose of your example, but on the figures above you came up with this would vastly reduce the tax base in Australia.
I'm not saying don't explore options to improve the tax system - I'm saying that most Australians desire fiscal conservatism (i.e. not significantly reducing the tax take when we're well in debt) just as much as they desire fairness (or as you call it, 'envy').
You are equating envy with "fairness" not me
Envy is resentment that someone else has something they dont. Nothing, at all, to do with fairness
Envy is someone getting a $30,000 tax reduction under my system but is outraged that Andrew Forrest is getting a $1m tax reduction because he's rich. The fact he still pays $10m in tax means nothing to them (the numbers are rubbery)
Let me put it this way. Why did you select a 30% rate for the top tier income-earners, and then progressively lesser rates for lower income-earners, in your example?
Was it due to envy?
Obviously not. It was because it is common sense for one to be taxed according to one's ability to pay.
Most Australians desire a progressive tax system because this is fair. No resentment involved,
I don't think many would have a big problem with your system, except for the fact that it would vastly reduce the tax take.
I would prefer a flat rate but the politics of envy would never allow it.
I'm still good for zero up to an amount but Medicare remains at a flat rate for everyone
Remember the old saying before they fixed it: No use working overtime because most of it goes in tax?
My system is the opposite: you wont be penalised for working harder and earning more
Again: the rate is set to ensure that the total tax take (allowing for the loss of deductions) is either the same or more
You could also increase the GST to make up any shortfall (and not give it to the states)
I found some Papers on the subject - I haven't read them yet so i dont know what they are saying
https://www.cis.org.au/wp-content/uploa ... 7/pm66.pdfhttps://melbourneinstitute.unimelb.edu. ... 004n05.pdfhttps://theconversation.com/progressive ... ngs-142823