On a related issue, much is made by libertarians of how tax is unfair because it's used to provide 'unearned income' to the unemployed, single mums and the like. Cry me a river. As with most libertarian arguments about the economy, this is a tissue-thin piece of hypocrisy designed to protect society's biggest leaners.
What about the unearned income being paid out to the banks in interest? In 2013, Australian private household debt stood at $1.84 trillion. Even on a conservative estimate of 5% interest as an average, this works out at $92 billion a year that we pay for the use of money that's created out of nothing. And this doesn't consider the hidden costs of interest in the goods and services that we purchase. In the US, it's estimated that 35% to 40% of all money spent goes to interest. This interest goes to bankers, financiers, and shareholders, who take a 35% to 40% cut of that nation's GDP.
If anyone has figures on the cost of interest to the Australian economy, please share. It would make interesting reading and surely be Australia's single greatest example of unearned income.
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yep Gary and the education system has dumbed people down enough not to be able to do simple sums. We are heading towards Greece very fast. Look at the billions wasted on the gw scam, the invitation by Rudd to the illegals. Now they are talking about rewarding him with a UN job. I visited Canberra recently and spoken to a number of public servants. Even with their flex time, paternity leave, dv violence leave, lsl, rec leave and being almost unsackable now matter how incompetent they see themselves as victims. It is obvious why the vast majority of bureacrats vote Labour/Greens. Many of them live in la la land.

runner,
People who live in glass houses shouldn't throw stones. You're in la la land yourself if you think that we're susceptible to Greece's problems. Australia's public debt is entirely in Australian dollars, so unlike Greece, Australia will never have any problem borrowing more money. Surpluses may sometimes be desirable to control inflation, but right now inflation is below zero; the government should be taking on far more debt.

It looks like youve fallen for Abbott's GW scam. And though Rudd's refugee policy didn't work, his ending of the Howard government's persecution of refugees deserves commendation not condemnation. Surely you, as a Christian, know that we should never resort to evil?

BTW Rudd has virtually no chance of getting that UN job.

Cobber,

Who said Howard was innocent? He was a politician, and look what happened to him for his sins. NB the author used to work for the Labor party.

Aidan,

You are the one totally ignorant of economics. Borrowing is borrowing - it costs, and it is we who are paying $1 billion monthly in interest, no matter who racked up the debt. You know nothing; you are just a political bigot. Low interest rates merely encourage people who can't afford to borrow to spend more via borrowing, while punishing savers and self-funded retirees. As for 'borrowing in Australian dollars', of course we do - converted from the yuan and other foreign currencies. It has to be repaid. Your 'economic sovereignty' is a load of ignorant BS.

mikk & jingelic,

They are essential services, but they produce nothing. Only idiots would confuse them with the pen pushers I refer to. And the 'rich' would still be paying the the same amount of tax for politicians to waste no matter how many dole and welfare bludgers were cut loose. How thick can you be!

So many people appear to have the views that the media owners want them to have and train them up via the TV to have.

Its obvious the media is training the people of Australia to hate the welfare system for individuals and the people who claim it. Stories demonizing the welfare system for individuals and those who claim plague the 'current affairs' programs.

When was the last time there was a story on TV demonizing corporate welfare and the companies who claim it?

When was the last time we saw a story on TV talking about how much money corporate welfare is costing the Australian tax payer?

When was the last time there was a story on TV telling us how the banks create money out of thin air using our signature and how the govt can do the same thing using the exact same method and a signature of a treasury official and spend the money into the economy by providing all the goods and services required by the economy, including incomes for all?

No, all we ever see is how the people on the bottom end of society are responsible for all the nations economic ills.

Funny how the people on the bottom end of society are never responsible for any good economic news.

People with good ideas and self starting initiative are those who create wealth.

Take Microsoft, three guys with a shared idea and a dream, started something in the family garage. And created a multi billion dollar Enterprise that now directly or indirectly, employs thousands.

However, it takes very little imagination to dig a hole in the ground and exploit the enterprise and endeavor of others to mine wealth.

Yet mining and smelting the tax dodging barons of industry, will hold themselves out as examples of enterprise?

Or self made men born in the log cabin carved from the wilderness with their own two bare hands.

And all to often forget that they are not rich because of their own efforts, ideas or example; as they stand up before their bloated peers, parroting the blindingly obvious, like it was the sermon from the mount and from the mouth of the oracle? (business guru and suppository of all wisdom)

Yet expect to be treated as venerated royalty? And would complain all the way to the bank if we ever got true tax equality!?

Of course some folks pay more tax and rightly so, given they "earn" most of the taxable income.

Me I'd love to pay more than a million a year as my personal tax burden, and just for the privilege of being in a country that enables the sort of enterprise that would allow one to earn enough income to be able to pay that much tax!

I also believe we have a responsibility to all those other (chains of) hands and minds that earn our income for us.

For mine the only folks that actually earn their own money; are farmers and very small business operators busting a gut from dawn to dusk for their families and generally for the betterment and benefit of the wider community.

When you've spent a day running beside a truck and hand loading (throwing) square bales of green lucerne hay, you might even get to understand that?
Alan B.