Judith Sloan makes some very interesting points in the following article on tax.
Politicians of course would just like the public at large to accept higher taxes because that's an easier path for them than root and branch reform.
She highlights some interesting points,
As for the Greens idea of taxing high incomes at 50%, there's the UK experience,One of the problems with the idea that "the rich" should pay more tax is that, in Australia, they already pay the vast bulk of income tax revenue. According to the latest figures, the top quarter of income earners paid more than two-thirds of the total revenue from income tax. By contrast, the bottom 25 per cent paid less than 3 per cent of the total.
I can only assume they increased the rate but didn't overcome deficiencies with the base.We are also seeing overseas experiments of imposing higher taxes on "the rich" go horribly wrong. In the UK, for instance, the introduction of a new 50p top tax rate for those earning more than £1 million a year saw the number of people in this tax bracket fall by over 60 per cent. Rather than raising more revenue, it is estimated that £7 billion was lost in tax revenue.