those on a lower wage require 100% of their income just to scrape through, while the high income earner sits pretty.
rehctub,
Are you saying that a, say 20 % tax on every dollar earned hits the rich & the poor equally ?
Let's put this way, some working bloke earns a $1000 & out of that he pays $200 Tax. The rich bloke pays exactly the same. Now the worker doesn't earn anymore but the rich bloke earns $10,000 more so he pays $2000 in Tax. I fail to see any unfairness in that. The present system is what wrecks our economy where the worker still pays 20% whereas the wealthy only pays a fraction. Oh yes, they are portrayed as paying 49 cents or more in the Dollar but unlike the worker they can claim just about all if not more back in Tax write-offs.
Where is the fairness there ? I see it with donations where they give generously with the right hand whilst the left hand is already filling out a Tax refund claim form.

Indi, as I said, tax is a very complex issue.

Firstly to your flat tax. Yes, a flat tax does hurt
Lower income earners, as it bites into their living money, whereas fo the high earner, it cuts into their disposable money. Many low income earners don't hae disposable income.

Donations.
If you make a donation of say $1000, this comes from your gross income, so, you either pay it in tax, or a doation. Either way, you don't have to use of it, however sponsorship can get messy, a many sponsors get gifts which can attract FBT.

Write offs.
If you take any companies before tax earnings, then add in the deductions, interest, depreciation, funding costs, motor vehicle costs, etc etc, you will find that these all add up to the amount of tax one would have paid if they had no deductions.

Now as for Claiming everything but the kitchen sink, just remember, most of the smaller companies go to work just like you and I, of cause they want to make a profit, but the difference is, they often risk their house, just so others can have a job.

This furfy about companies only paying 7% tax is just that.

They just dont pay income tax, nor do they enjoy the benefit of a tax free threshold.

People need to get their head around that.

Royalties. Personally, I consider them a tax, however, they don't form any part of income of company tax, as they are over and above.

tax is a very complex issue.
rehctub,
Only the present system with all its variants. It couldn't be any simpler than 20 % full stop.
The present complexity is the issue which we need to rid ourselves of.
I'm afraid I fail to see any of the complexity you refer to in a flat tax. I think it's got more to do with those raking in the dough worrying about losing a few crumbs.

I guess we will have to agree to dissagree indi.

Companies would love a flat 20% tax rate, or better still a very small transaction tax, say 1%.

Just think, every time $100 dollars moves from one bank to another, a dollar is collected.

As I have said before, it is suggested that every other tax, including PAYG and company taxes could be abolished.

Why on earth we haven't gone there, at least on a trial basis, is beyond me. The recent QLD flood levy would have been a good example of trying this tax.

One thong that is a given is that the present system of tax collecting is not going to be sufficient in years to come.

Then what!

Then what!
rehctub,
I think that when the time comes in the very near future the crowd which advocates a flat tax & National Service will romp it in at the election. Why do I think so ? Because I am observing increasing discontent with the way our society is being manipulated by ex lawyers. People are sick & tired of working just to support others. Reward for effort not getting fleeced for effort is now well in the firing line. People are getting more enlightened, just wait for a little while & you'll see. Already people are looking beyond the mining boom.

Reward for effort has been long gone.

As a baby boomer i stated to invest at about 30, why, because I knew when compulsory super came in that there would be little hope for a pension when I retire, or at least one you can live on.

As for free loaders, I'm with you on that one, make everyone work for their money, no free hand outs and certainly no having large families in the expectation that someone else will provide for them. Damn that baby bonus!

At fhe very least, cash payments for welfare and alike should be stopped immediately, because we the tax payer should at least have some say as to where these dollars can be spent, and certainly not wasted.