If the idiots handling the taxes, would increase the top personal tax to between 65% and 70% and no tax up to about $30,000, and put the top corporate tax up to about 55% and no tax on lower incomes ie, $500,000 or so, The economy would almost fall into place, with minor adjustments. Unfortunately, like the people who get into parliament or congress, and don't seem to have enough common sense to be able to work out simple problems. I suggest you go on the internet, and look up "History of US tax" and "Taxes around the world". There's a fair chance that the tax in the 1950's area, did not have a no tax amount of any value for the working community, which would be common for the type who get into the power of parliament or congress, they don't have enough intelligence or integrity.

The economic problems in Australia have simple solutions:

1. Federal budget

Suspend foreign aid and apply the principle that charity begins
at home.

Stop the NBN.

Abandon the flood levy and carbon tax.

Stop the boats.

2. Economy

Raise interest rates until the savings ratio rises to the point that our current account comes into balance.

Increase the petrol tax by at least $1 per litre with high alcohol blends such as E85 exempt. The increased revenue to be applied solely to paying off debt, with no compensation to any group.

Prohibit the export of grain, with any surplus being used to make biofuel.

With the developed world about to descend into another financial meltdown, exacerbated by peak oil and peak food, we face an extremely turbulent period in world history. Fortunately, we possess the four vital things needed for survival:

A surplus of food

A surplus of minerals

A surplus of energy

A sea boundary

If Julia were brave enough to implement these proposals, she might even get re-elected.

The wages share of national income has been going down for years in Australia, while the profits share has been been rising, and a big gap has opened up between wage rises and productivity increases, with productivity rising faster than wages for years. See the graphs (sourced from the Australian Bureau of Statistics) in the following

http://bilbo.economicoutlook.net/blog/?p=11911

If the wages rise a bit again at the expense of profits, why should we be worried?

Plerdsus,

These pie charts from the tax office show where federal government revenue comes from and where it is going. Foreign aid doesn't even rate.

http://www.ato.gov.au/budget/2009-10/content/overview/html/overview_40.htm

Foreign aid is about 0.35% of our GNI

http://www.parliament.uk/briefingpapers/commons/lib/research/briefings/snep-01769.pdf

I am unhappy about the boat people situation too, but there aren't enough of them (yet) to make a significant difference.

Ever heard of progressive economics Henry? It was gave Australia it's middle class and it's what props up business in the bad times.
Surely you realise that economic theory says that high *company* profits are worse for the economy than liveable wages!
In all of your ranting not *one* mention of over-leverage and interest rate manipulation! Nor the issue of under-employment which is nicely masked by the definition of "employed" having nothing to do with living wages.
Just boot the workers, non-profit infrastructure and anything Labour...but for Gods sake don't mention recent record profits!
If this is the state of economic discussion then I'm not surprised we are following the USA into structural decline.

The Australia Institute says that on Australian Bureau of Statistics figures, less than a third of the people currently without jobs who say that they want to work are counted as unemployed, for one reason or another. If they were included, the unemployment rate would be 14.3%, and it would be 20.5% if the underemployed were included as well.

https://www.tai.org.au/?q=node/254

I find it rather amusing to hear those experts telling us that we don't understand the complexities of economics. Well, do they ? Doesn't seem to look like it does it ? I know economics ignoramuses who manage to overcome constant economic difficulties on very little funding available. Yet, the economic experts with billions to choose from manage to go broke at every turn. Now, who's the one who doesn't understand economics ?