Poor voter...nowhere to go.

Dan

The author shows almost complete ignorance about how our income tax system works in practice.

Firstly, Australia has a tax system that relies unduly on income taxes, which are amongst the most savage in the world. High marginal rates of tax, that are applied to even modest incomes, are a huge disincentive to work effort. Coupled with generous tax thresholds they are a major reason why many women choose to only work part-time.

Our top rate of 45 cents in the dollar is simply confiscatory. Of course it is widely avoided. Our billionaire class has corporatised their assets and pays tax at the company rate (either 26 or 30 per cent). The rich also employ an army of accountants and lawyers to minimise their tax.

Half our population gets more from the government than they pay in tax. It is the upwardly mobile, especially higher earning wage and salary earners that get fleeced.

More reliance on indirect taxes, especially luxuries, is the way to go.

Ssh, Tristan, be vewwy, vewwy quiet. The Empty Chair is betting the Labor house on this simple three-part strategy. 1- Say as little as possible. 2 - Economy tanks. 3- Massive pre-election ad campaign against the Menacing Controlling Wallpaper.

Labor is hard put to organise a root in a brothel! Let alone propose a really progressive tax/tax reform!

The only thing that really occupies the brain's trust, is winning the next election! And then making sure the brothers have cushy jobs and great retirement pensions and benefits.

They might win, but only because they are not the Morrison led coalition!
Alan B.

The problem is not that income tax is inherently regressive. The problem is that the scales have been progressively flattening for some time. A good way to redress the impact on people with lower incomes is to combine with tax credits. Luxury taxes can be effective ; but you have to be careful how you target them. ie: Target genuine luxuries so you don't inadvertently hit people on lower incomes.

Tristan,

Income taxes are progressive. The problem with the left is the assumption that it is a privilege to keep any of the money that one has earned and the assumption that the rich are captive and can be taxed endlessly.

The reality is that people are extremely mobile. When Sweden used to have a 90% top tax bracket, most wealthy simply shifted countries for tax reasons or moved their money offshore. Governments are competing for businesses and entrepreneurs to build businesses and need to do this with tax incentives

Labor ignores the salient fact that company tax has nothing to do with the actual revenue collected after compliance and tax avoidance/minimisation/reconciliation costs have whittled down the revenue that the ATO actually collects! e.g., the highest rate of tax collected as reconciled revenue for the year finding 2017 was just 13%! With some paying as little as 4% and around 40% paying no company tax at all!

And the better off are so able to arrange their finances, so as to never pay more than 15%

Meaning, if there were no clever accounting or reconciliation or exclusions. Then an unavoidable 15% flat tax with a generous tax-free threshold would collect double or more actual revenue than now!

Suggest that to any of your labor mates and watch them go ballistic as they scream. we've already lowered the top rate to 35%!

This tells us they have no intention of rationalising our tax system nor making it more transparent or less avoidable than now. And like the fiscal illiterates/incompetents they really are, will continue to front-load the tax burden wherever possible?

Even as the taxpayer cohort shrinks and shrinks!

A progressive tax system, Tristan. You can't be serious, surely! That sort of thing is not only in labor's DNA, but an obscenity to the deaf, dumb and blind mindset of, talk the talk of blah, blah, blah labor!
Alan B.

A minimum company tax could be a good thing ; like they're trying in Europe. Though they're setting it too low. Agreed as things are most big corporations can hire savvy lawyers and accountants and minimise their tax.

The open borders principle- no trade barriers policy- complicates finance- of course it operates in theory rather than practice- the players trying to get everyone else to make compromises. We need the power and responsibility for our own affairs- we can make allies.

Flat tax for wage earners & Business managers & company Tax for companies !

Alan B,

Clearly, you have no clue about economics or accounting.

A company doing well makes a gross profit (EBIT) of about 15% on funds employed so 15% on reconciled revenue on which the maximum they would be expected to pay would be 30% of the profit or 4.5% of RR.

The company that paid 13% on RR is a rock star, probably in oil and gas.

Note that about 30% of companies after deductions made no profit and thus pay no tax.

Simple.