THE degree of ignorance about the distribution of tax across households is remarkable, especially given that the truth is so easily and freely accessible. For politicians perhaps it is wilful; the facts suit neither side.
The Left typically tries to create the impression the “rich” aren’t paying their “fair share”. Consider former treasurer Wayne Swan’s attacks on “mining billionaires” and welfare groups’ continual prattling about the financial benefit of concessional super taxation to high-income earners.
The Right, meanwhile, evokes the ordinary, “battling” taxpayer, whose hard-won earnings, so the argument goes, are siphoned off to pay for inefficient or ineffective government programs.
But the overwhelming bulk of people in Australia pay no net tax at all. High-income earners have become a giant pinata that the majority hit for extra money to pay for whatever new social spending programs the political class proposes to stay in office.
Our constitutional democracy, rather than safeguarding a set of inviolable tax rules applied under the rule of law, has become an elaborate mechanism for extracting resources from a small minority for the much larger majority. A crude summary might be “pay up or else”.
Only the top fifth of households ranked by their income - those with incomes of more than $200,000 a year in the financial year ending June 2012 - pay anything into the system net of the value of social security in cash and kind received, according to data from the latest Australian Bureau of Statistics survey of household income.
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The Left typically tries to create the impression the “rich” aren’t paying their “fair share”. Consider former treasurer Wayne Swan’s attacks on “mining billionaires” and welfare groups’ continual prattling about the financial benefit of concessional super taxation to high-income earners.
The Right, meanwhile, evokes the ordinary, “battling” taxpayer, whose hard-won earnings, so the argument goes, are siphoned off to pay for inefficient or ineffective government programs.
But the overwhelming bulk of people in Australia pay no net tax at all. High-income earners have become a giant pinata that the majority hit for extra money to pay for whatever new social spending programs the political class proposes to stay in office.
Our constitutional democracy, rather than safeguarding a set of inviolable tax rules applied under the rule of law, has become an elaborate mechanism for extracting resources from a small minority for the much larger majority. A crude summary might be “pay up or else”.
Only the top fifth of households ranked by their income - those with incomes of more than $200,000 a year in the financial year ending June 2012 - pay anything into the system net of the value of social security in cash and kind received, according to data from the latest Australian Bureau of Statistics survey of household income.
more
Cookies must be enabled. | The Australian