John McRobert has long displayed an excellent understanding of the vast damage wrought upon the Australian economy by an incredibly perverse taxation 'system'. The role of taxation on industry and thrift in delivering the world into the GFC is undoubted.

However, I am less seized by his spending tax to replace the multitude of taxes with which we've been shackled. How would this deal with the undergound cash economy - or with barter? Also, although John's proposal is infinitely superior to what we have now, a tax on spending will still tend to inhibit spending to some small extent.

Nor is his spending tax likely to curb property bubbles which is clealy the other half of the reason we're having this GFC. A tax on land values would do all John McRobert is seeking and then some. It also addresses housing unaffordabilty for this and future generations of Australians by putting paid to the property speculation industry.

Flat tax of 10% of all Gross Personal Income. No Deductions for anything. Severe fines for shifting Gross Income sideways.

I blame many of societies problems on the decline of progressive taxation. It is no weirder than blaming it on TV or video games, rock music or atheism.
I see no benefits for society that have accrued from the lowering of taxes for the rich.
People complain about our poor infrastructure but if you look around you will see a lot of (clapped out) infrastructure built with the taxes collected under a much more progressive tax system. Dams, water and sewage systems, railways and roads (freeways not tollways too), hospitals, schools, emergency services. All cut, wound back, sold, scrapped, left to decay and neglected. Is it any wonder that governments cant afford to maintain existing infrastructure let alone build from scratch when they have a much reduced revenue from taxation than previous governments had?

Put it to a vote. See what someone on 50k or less thinks a CEO on 20mill a year should pay in tax. It is the only democratic way.

I think our system is beyond repair.We have regulation ,based upon regulation.Not even those who invented it can understand it.

Only when we have total economic collapse,will there be a new birth of common sense and fairness.Our system is tied in so many knots of self interest,that no one dares unravel the puzzle for fear of their own loss of immediate sustanance.

It is not just the tax system,it is also our monetary system whereby the Global Reserve Banks create money from nothing depreciating our currencies and keep us in perpetual debt slavery.

Self interest and greed destroys the common good and so the cycle of birth and decay continues.

I've done an interesting exercise.

Gross Earn: $653640.68 @ 39 years. $16760.02. average per year.

Taken Home: $506269.02 @ 39 years. $12981.26. average per year.

Paid Tax: $147371.66 @ 39 years. $3778.76. average per year.

Average Pay Rate over 39 years: $8.06 per hour for 40 hour week.

Average Tax paid over 39 years: 18.88%

Average Wage increase per year over 39 years: 10.33%

As you can see I was never in the high wage bracket but I plodded on for 39 years & did OK. I have never been on the Dole. No super in those days. I never regretted having to pay my Tax. Yes I get a Pension now.

However what I do object to are the CEO's etc, who earn obscene amounts in Salary & Bonuses, who pay even less Tax than I have every year. eg; I believe Bondy made an obscene profit one year & only paid $1 Tax.

Is that fair?

Interesting analysis, Jayb.
I'd like to see your REAL wage and other increases over the period, especially in view of the decline in real wages in Australia and the US since 1972. http://thedepression.org.au/?p=1802