RB wrote:I'd be interested to see the report you are referring to.
Removing deductions would not raise taxable incomes in Australia (i.e. and offset the lower tax rates) by as much as you think.
I appreciate that you had to pick numbers essentially at random for the purpose of your example, but on the figures above you came up with this would vastly reduce the tax base in Australia.
I'm not saying don't explore options to improve the tax system - I'm saying that most Australians desire fiscal conservatism (i.e. not significantly reducing the tax take when we're well in debt) just as much as they desire fairness (or as you call it, 'envy').
You are equating envy with "fairness" not me
Envy is resentment that someone else has something they dont. Nothing, at all, to do with fairness
Envy is someone getting a $30,000 tax reduction under my system but is outraged that Andrew Forrest is getting a $1m tax reduction because he's rich. The fact he still pays $10m in tax means nothing to them (the numbers are rubbery)
The old story about the group of luncheoners
The rich bloke always paid half.
When the total cost comes down, for one reason or another, they think the rich bloke should not get any of the benefit and should continue to pay the same amount. The rest of them should pay less because its only "fair'. After all, he is rich and can afford it (envy)
The rich bloke says "**** off" with your principle of fairness and never goes again so they all have to pay more
My proposed system is based upon the total tax collect being either the same or more hence why my rates are for illustration only
The real benefit is bringing down the cost of tax collecting for both the goverrnments and the taxpayers and the removal of one of the main ways of tax avoidance.
If the top rate was less, and deductions removed,
most people wouldn't bother finding ways to avoid tax
The answer to any problem is not to tax more. People will still find ways around tax.
Tax less and remove the incentive & means (tax deductions) to find ways around it.
But, even if they did it, the governments will still dick us over just like they did with GST