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Keep socialist blog En Passant going - donate now
If you want to keep a blog that makes the arguments every day against the ravages of capitalism going and keeps alive the flame of democracy and community, make a donation to help cover my costs. And of course keep reading the blog. To donate click here. Keep socialist blog En Passant going. More... (4)

Sprouting sh*t for almost nothing
You can prove my 2 ex-comrades wrong by donating to my blog En Passant at BSB: 062914 Account: 1067 5257, the Commonwealth Bank in Tuggeranong, ACT. More... (12)

My interview Razor Sharp 18 February
Me interviewed by Sharon Firebrace on Razor Sharp on Tuesday 18 February. http://sharonfirebrace.files.wordpress.com/2014/02/18-2-14-john-passant-aust-national-university-g20-meeting-age-of-enttilement-engineers-attack-of-austerity-hardship-on-civilians.mp3 (0)

My interview Razor Sharp 11 February 2014
Me interviewed by Sharon Firebrace on Razor Sharp this morning. The Royal Commission, car industry and age of entitlement get a lot of the coverage. http://sharonfirebrace.com/2014/02/11/john-passant-aust-national-university-canberra-2/ (0)

Razor Sharp 4 February 2014
Me on 4 February 2014 on Razor Sharp with Sharon Firebrace. http://sharonfirebrace.files.wordpress.com/2014/02/4-2-14-john-passant-aust-national-university-canberra-end-of-the-age-of-entitlement-for-the-needy-but-pandering-to-the-lusts-of-the-greedy.mp3 (0)

Time for a House Un-Australian Activities Committee?
Tony Abbott thinks the Australian Broadcasting Corporation is Un-Australian. I am looking forward to his government setting up the House Un-Australian Activities Committee. (1)

Make Gina Rinehart work for her dole
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Sick kids and paying upfront

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Save Medicare

Demonstrate in defence of Medicare at Sydney Town Hall 1 pm Saturday 4 January (0)

Me on Razor Sharp this morning
Me interviewed by Sharon Firebrace this morning for Razor Sharp. It happens every Tuesday. http://sharonfirebrace.com/2013/12/03/john-passant-australian-national-university-8/ (0)

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Tax cuts for the rich? Seriously Treasurer?

 

The other day Australian Treasurer Joe Hockey talked in vague terms about tax reform. What did come out of his thought bubble of a speech was a commitment to cut the top marginal tax rate (which is 45% of every dollar for those whose income goes over $180,000) and the next level down (37% on the income greater than $80,000).

Hockey said bracket creep was forcing more people into higher tax rates.  This just means that as your pay goes up part of your income over time ends up in a higher tax bracket so your average tax rate increases.

Say you were earning $140910 and a Tribunal decided you were really worth $185000.  The $5000 above $180000 would be taxed at 45%. Now before you tell me such a pay increase would never happen, that 31% pay increase is precisely the pay increase MPs got in March 2012, and then received another 3% pay increase on top of that 3 and a half months later to $190550.  Nice work if you can get it.

Only 2.7% of income earners are in the top bracket and most of them get there by living off our labour. They are bosses, or managers for bosses or well paid snake oil salesmen and women for capital like tax and other lawyers.

Hockey did not detail how much the tax cuts for those on more than $180000 would be, nor did he tell us in any detail, and to parrot every true conservative, where the money is to come from.

Maybe despite the years of Budget deficit and debt doom and gloom they’ll just blow that even more. Hints from the Treasurer in his speech indicate two major areas Hockey has in mind to fund tax cuts for the rich – sacking even more public servants and imposing the GST on health services.

However you don’t have to be a genius to figure out that the government that has form in cutting a large number of public service jobs, that is cutting social welfare spending, that wanted to tax us with a GP co-payment, that wanted to cut pension increases while leaving the superannuation of millionaires untaxed, that is cutting funding for public health, education and transport, will try to do the same again to fund a tax cut for its rich mates.

And that is before they try to increase the GST to 15% and impose it on fresh food, and health and education spending.

In other words we workers will pay for the tax cuts for the rich Hockey has floated.

Hockey’s main argument is that the wealth will trickle down from the rich go-getters to the rest of us. It is not true. Trickle down is a lie.

Tony Moritz's photo.

 

The Howard and Costello tax cuts were returns of some of the extra revenue they had collected through bracket creep. Hockey is proposing to do the same thing, not of the extra tax he has collected already, but apparently just future bracket creep.  Even then if he gave it all back it would be $25 billion less revenue over the next four years.

One way of doing this would be to index tax brackets. He won’t because that would deny them hidden extra revenue they can return in the form of tax cuts in the run up to an election or maybe even a by-election.

An alternative would be to tax the rich more and redistribute it back to ordinary workers in the form of tax cuts and better welfare and social services and public services like health, education and transport.

Australia is a low tax, low spending country. It’s time we started taxing the rich and the big business tax avoiders more, not less.

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Comments

Pingback from Tax cuts for the rich? Seriously Treasurer? – Written by JOHN PASSANT | winstonclose
Time August 26, 2015 at 5:03 am

[…] Posted by John, August 25th, 2015 – under Abbott government, Joe Hockey, Tax cuts, Tax reform, Tax the rich. Comments: none […]

Comment from Mike
Time August 27, 2015 at 2:42 pm

What happened to my comment about your considerable wealth? Keep pretending to be a worker then.

Comment from John
Time August 27, 2015 at 9:09 pm

I deleted it you fuck knuckle as irrelevant to our discussion. Stop pretending to be a serious contributor on my blog.