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We need a daring and courageous government : Comments
By Thomas Ryan, published 7/11/2013Reforms to the industrial relations system, the reform of the welfare system and an overhaul of the taxation system are priorities for Australia.
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Posted by Grim, Thursday, 7 November 2013 7:40:33 AM
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Reforms to the industrial relations system?
Yes sure, and given absolutely everyone contributes to the result, how about limiting the top salary, to not more than thirty multiples of that received by the lowest paid on the shop or factory floor!? Labour costs are only around 16% of the cost of doing business in this country. The real costs are energy, water and transport, which can rip a 60%+ hole in the total return! With all the creative accounting and too clever by half avoidance schemes available, company tax varies, in real terms, between 1 and 4%, with somewhere around 40% of our international guest corporations, paying no company tax to anyone!? Yes sure, reforms are definitely needed, if only to take down this avoidance culture! If we are to reform our current tax system any more, how about just simply raising the threshold? This will give a tax break to everyone, and the most to those who need it the most! Neither this govt, nor the opposition has the testicular fortitude to tackle any of those problems, with policies that work; given that would impose a return to public ownership on the govt. Nor will they bring in meaningful changes that massively simplify our tax system! There are just too many vested interests, with their hand in the till. Ditto housing! I mean, the current govt is busy busy trying to tank the NBN roll-out? And that is in spite of the fact, in its current limited guise, it is already earning more money than the entire iron ore industry? If that's not a cogent, credible business case for continuing with the current roll-out, then I'd like to know, what is!? Rhrosty. Posted by Rhrosty, Thursday, 7 November 2013 11:05:10 AM
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Well the Abbott Government has made a start on its tax reform agenda it has been reported. http://www.smh.com.au/federal-politics/political-news/smokers-lose-out-as-abbott-tweaks-tax-20131105-2wzuw.html
Superannuation earnings above $100,000 p.a. will not be taxed. The Low Income Superannuation Contribution for workers earning less than $37,000 p.a. will be scrapped. The rich will be richer and the poor will be poorer. Posted by Agronomist, Thursday, 7 November 2013 11:26:47 AM
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Love the comment on Truth by the lying rodent which heads the authors website!
Posted by Daffy Duck, Thursday, 7 November 2013 4:57:48 PM
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'The popular vote will never go to the party which offers higher taxation.'
No. But the prevailing wisdom that people hate paying taxes is overrated and overblown. One of the great moments of Australian television was on the Q&A episode when Barbaby Joyce asked the audience 'Who wants to pay more tax?' and most of the audience put up their hands. (BTW Multiple links to this were on YouTube for a long time, but a quick check before posting this comment showed that all but one have disappeared and the only remaining link is dismantled. - One for the conspiracists??) It's not the amount of tax that people resent, but the unfairness of the taxation system, especially the way it's being manipulated to provide corporate and middle class welfare rather than helping the people who really need it, and to provide investment incentives for people who already have too much money. I've spoken with many people in high taxing countries like Denmark, Holland, Sweden, Finland et al, and have never found that these people have a problem with the amount of tax they pay (high 40s on average). This is because these countries all have either free or low cost healthcare, education and public transport and a strong welfare safety net (although I'm not sure how or if the EU's post-GFC austerity madness has affect them). The extra they pay in tax is more than made up for by the amounts they save on these life essentials. Posted by Killarney, Thursday, 7 November 2013 7:42:55 PM
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G'day Killarney,
It is interesting that Nordic cultures embrace a higher tax rate, and I for one find it admirable that individuals in these cultures have even taken pride in how much tax they pay. The openness of their systems is also appealing. The question here concerning the future of Democracy is not about tax rates per se, but rather the tendency of popular voting to drive tax rates down. In Sweden for instance, I believe taxes have decreased from 57% of GDP to 47% over the last 20 odd years. The truth is, for hundreds -if not thousands- of years, the only time governments can legitimately justify raising taxes is in times of war -apart, perhaps for pigovian taxes which can often be levied on minorities, like smokers for instance. In Aus. Federal income tax was first introduced to fund WW1. Getting back to the article, I find it ironic that the author should tax the conservatives of all people with the need to be 'courageous and daring'. We've just had 6 years of courageous and daring government, and pressing on with unpopular policies despite the political ramifications sums up Julia Gillard's attitude rather nicely, I would think. Posted by Grim, Friday, 8 November 2013 6:43:41 AM
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As to the manufacturing industry, a good start would be a morality clause, like “all countries should be treated equally”. We have laws to protect our own children from being exploited or overworked, yet have no qualms about importing cheap goods from countries with no such laws.
Blatant discrimination and hypocrisy. If we truly want a “level playing field” we need everyone to play by the same rules.
Tax reform is the fatal Achilles heel of Democracy. The popular vote will never go to the party which offers higher taxation. Since WW2, taxes have been dropping with virtually every change of government. The only hope for the future of Democracy is if -like monetary policy- tax reform is given to an independent body like the Reserve, or treated with at least as many safeguards as the GST. A flat rate transaction tax would work, with low income earners issued 'discount' cards, much like supermarkets.
Allowing politicians to curry favour with tax breaks can only lead to -more- fiscal imbalances.
As for welfare, I agree drastic reform is needed. I would advocate the “Newstart” allowance to be restricted to just 4 weeks. After that time, the unemployed should go back to school for retraining to make them more employable and be paid on a completion of studies basis; IOW as much like real work as possible.
Alternatives could be volunteer work and military service.