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Punish the poor, reward the rich!

Discussion in 'Business, Investment and Economics' started by krisbarry, May 11, 2005.

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  1. krisbarry

    krisbarry

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    Another year, Another budget and another cock-up for the government.

    80% of workers will get that sandwhich and milkshake offer again, (Approx $6 a week more) Should be a good run for the snackbar owners of Australia,come July 2005! LOL

    Still no real incentive for people to get off welfare and into work.

    Tax rates in Australia are still way too high, especially for the poor. How can the tax free threshhold be $6000, when it is said to be living under the poverty line if you earn under $20,000 per year.

    Low Income earners get $60 to $240 tax cut and high income earners get $4,000, yes another true cock-up!
     
  2. clowboy

    clowboy

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    I guess the write up will be in today's paper, I havent paid to much attention to it all becuase it wont really change my life in any great detail.

    Is there an online link?


    would be far better to abolish the tax free threshold and lower the middle tax bracket IMHO.
     
  3. krisbarry

    krisbarry

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  4. krisbarry

    krisbarry

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    Looks like the market doesn't like the budget either, All ORDS trading in the red...booo hooo!

    Doesn't help when the DOW is down too.
     
  5. clowboy

    clowboy

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    ha ha ha

    I quote that link

    "THE 17 per cent marginal tax rate will be cut to 15 per cent for people earning $60001 to $21,600;"

    60,001 nice.......Ill get another $50 a week

    Ha ha ha
     
  6. taurus

    taurus

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    Now to get my income up to $94K, or $188K and somehow try & artifically split it :p: (95,000 marks the 47c/$ bracket now right?).

    I guess if you're on the big money, you won't be complaining; but you're not paying tax anyway are you :rolleyes:

    Can anyone point out the advantages/disadvantages of a FLAT tax system (if my terminology is correct)? I don't know much about it, other than the fact the rich won't evade it as easily.

    T.
     
  7. Knobby22

    Knobby22 Mmmmmm 2nd breakfast

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    A flat tax is advantageous to the rich as the poor pays more tax. That's why the US has it.

    I thought the budget was good. The funny thing is that he government will have paid off all its debt next year and on the following year with the selling of Telstra will have $45 billion! to win the election. Also just like to point out that the future fund should also have an upward effect on investment and the stockmarket. The US and British and Japanese economies are struggling under debt and we have none. We are becoming one of the richest countries in the world. They will have to give us more tax cuts and more services. We all get tax cuts and everyone whinges, human nature. The average wage is above $50,000 by the way.
     
  8. Smurf1976

    Smurf1976

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    Median average or mean average? (Yes it matters - a lot :) )
     
  9. mime

    mime

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    I'll tell you something I learnt about Labor.

    Their goal is to break the people financially so they are more dependent on them. Just look at all the Labor states. They still have taxes which were supposed to be abolished with the intro of the GST.
     
  10. WaySolid

    WaySolid Learner

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    High income earners will of course get a bigger tax cut in dollar terms as they pay more tax, simple maths. Looking at it from a percentage term is perhaps more relevant, I would dispute that many people earning around 60k a year are rich and yet they were near the top tax band. Long overdue step in the right direction with the correction of the top marginal rate.
     
  11. WaySolid

    WaySolid Learner

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  12. Milk Man

    Milk Man

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    The new tax cuts are a great idea.

    Bigger tax breaks to higher income earners is a better idea than giving low to middle income earners the better end of the stick for 2 reasons off the top of my head

    1- It motivates people people to work harder: who wants to do all those hours of overtime on average Joe's payrate to get into the top bracket only to have half of it taken away again? Most tradesman, truckdrivers, farmworkers and any other long hour-working employees are going to reap the rewards of this system.

    2-Hard workers and highly paid professionals deserve a bit of a break from the tax system. Why should they have to foot the bill for the doll bludgers and the pensioners that were too stupid or ignorant to save for their future?
     
  13. ghotib

    ghotib THIMKER

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    Let's just clear up a little fuzziness that often gets into these discussions.

    There is no direct relationship between hard work and high income. It's perfectly possible, and some would say highly desirable, for people to work their ****s into the ground for very low wages. It's also possible to be highly stressed while working your **** into the ground for very low wages.

    Personally, I think the gummint has missed one action that would instantly boost the productivity and the well-being of the nation. Offer tax incentives to all companies that replace their telephone menu systems with human beings. Enough human beings that customers are no longer forced to wait 25 minutes to, say, query a phone bill.

    After that they could outlaw all telemarketing and there'd still be jobs for students.

    Ghoti
     
  14. Rexer

    Rexer

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    The usual bleating comes out at whenever tax cuts for those of us on higher incomes are contemplated.

    I'll share something with you all.

    Last year I paid $75k in PAYE income tax alone. I paid another 10% on pretty much every $ I spent. I bought a block of land and paid another $20k in stamp duty on that. I travel >25000 km in my car every year and about half the petrol that I buy is actually tax.

    I'm sure that others on here have similar stories to tell.

    The government decides to alter the tax rates marginally, I'm still going to be paying about $70k in PAYE tax. I use effectively zero government services other than driving on the road.

    Don't start telling me I'm getting such a fantastic deal.
     
  15. wayneL

    wayneL Rotaredom

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    And this is exactly what our delightful media fails to mention, how much tax high income earners are paying in comparison to low income earners...the whole equation is never revealed.

    ....and to truncate a potentially extended rant, I'll leave it to others to pick up the baton here.

    Cheers
     
  16. krisbarry

    krisbarry

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    Well last year I payed a total of $25,000 back to the ATO and my income was a $20,000. How did I end up paying so much back you ask?

    Try....

    HECS & Student Supplement Loan
    (thought I should pay it off after having this debt for more than 10 years)

    I think the tax cuts would have been better of spent on our Universities and Hospitals. Rather than jackin' up the HECS fees 25% and growing the public hospital waiting lists
     
  17. Milk Man

    Milk Man

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    that and not outsource their callcentres to India!
     
  18. Milk Man

    Milk Man

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    couldn't have put it better! and keep in mind that a lot of well off people draw income from their companies- who havn't brought a mention in the new tax scheme.

    it would take a lot more to give low and middle income earners a bigger break anyway: there's probably 25 to get a 2 dollar cut for every fifty dollar cut. You can see what a huge difference that would make even if they got 10 dollars instead of 2! thats what labor does and thats why they always put the country into debt and the economy into recession.
     
  19. mime

    mime

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    Why are you ****ty about paying for your education? Nothing is free in life.

    I think Goth Whitlam we the last guy to offer free uni education and the impact on the economy. I hate it went people praise Goth as a hero when so many families went bankrupt because of his actions.
     
  20. mime

    mime

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    BTW nice artical WaySolid it explains the tax cuts nicly.
     
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