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A fairer tax system? (Read 1060 times)
mozzaok
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A fairer tax system?
Dec 11th, 2008 at 9:13am
 
I notice a lot of complaining about taxation, and it doesn't really seem to matter who is in power, we still get slugged by all tiers of government.

We seem to have a very convoluted system, which is full of loopholes and rorts, which some can manipulate, while the honest people get screwed over.

Does anyone know of any taxation systems which australia could introduce which would be simpler and fairer?

Are there any countries whose tax system we could model ours on?

The point is that we would need to raise the same amount of revenue, it is just whether it could be done more simply and fairer.



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locutius
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Re: A fairer tax system?
Reply #1 - Dec 11th, 2008 at 10:11am
 
Mozz, I wish I knew more about the tax system and other tax systems but from behind a veil of ignorance I think aboloshing PAYG or income tax and increasing GST could be a good option.

Simply, everyone needs to consume products/goods, it can't be avoided. So you pay no income tax but there is a flat 30% sales tax. That means Kerry Packer types can still claim that their income is $7.50 a year, it won't matter. Because everytime the company pays for business trips, holiday house, helicopter, prestige car, ....30% gst is put into the public purse. Same for the average bloke buying bread, beer, boats and bait.

If you have savings for retirement or house or car or sex doll, interest is not taxable and does't matter if it is part of your income. You pay your tax when you buy stuff.

I'm sure this is over simplified and there would be problems but everyone is paying an equal amount relative to their spending and what they can afford.

I would rather live in a country that wants to see abundant and quality services and infrastructure. Such as bikeways (urban and national) hospitals, libraries, public transport, better and more interesting sports and recreation facilities FOR THE PUBLIC not elite athletes, education. Part of the problem with most fair minded people compaining about tax is that they feel removed from real choices as to tax spending.

Another saving would be get rid of state goverments, and administration that doubles up duties such as state & federal hospital admin.
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freediver
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Re: A fairer tax system?
Reply #2 - Dec 11th, 2008 at 10:40am
 
The complexity in our tax system arises from attempts to close all those loopholes.

I think there should be a general reduction in the tax burden. There are too many handouts. We should lower tax rates for low income earners and replace it with carbon taxes, water taxes etc. Income tax should increase linearly, not in steps.

http://www.ozpolitic.com/green-tax-shift/green-tax-shift.html

Quote:
Mozz, I wish I knew more about the tax system and other tax systems but from behind a veil of ignorance I think aboloshing PAYG or income tax and increasing GST could be a good option.


That would benefit the rich and harm the poor. It is a regressive move. It would also encourage people to spend their money overseas.

Quote:
Because everytime the company pays for business trips, holiday house, helicopter, prestige car, ....30% gst is put into the public purse.


So business expenses should be taxed, not just retail spending? That could end up being a 100% tax on some items.
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locutius
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Re: A fairer tax system?
Reply #3 - Dec 11th, 2008 at 12:21pm
 
freediver wrote on Dec 11th, 2008 at 10:40am:
The complexity in our tax system arises from attempts to close all those loopholes.

I think there should be a general reduction in the tax burden. There are too many handouts. We should lower tax rates for low income earners and replace it with carbon taxes, water taxes etc. Income tax should increase linearly, not in steps.


Yes, I agree that there are too many handouts for some and not enough for others such as carers etc. I support work for the dole but think there are valid concerns about exploitation.

http://www.ozpolitic.com/green-tax-shift/green-tax-shift.html

freediver wrote on Dec 11th, 2008 at 10:40am:
Quote:
Mozz, I wish I knew more about the tax system and other tax systems but from behind a veil of ignorance I think aboloshing PAYG or income tax and increasing GST could be a good option.


That would benefit the rich and harm the poor
. It is a regressive move. It would also encourage people to spend their money overseas.


How so?
Charge the tax on the goods arriving into the counrty.

freediver wrote on Dec 11th, 2008 at 10:40am:
Quote:
Because everytime the company pays for business trips, holiday house, helicopter, prestige car, ....30% gst is put into the public purse.


So business expenses should be taxed, not just retail spending? That could end up being a 100% tax on some items.


I think they get away with far too much. A business exec's leased business car is for eg. a $330K Porche. It is claimed as an expence. At best the government should allow a claim only equivalent to a standard grade sedan or station wagon (commodore or falcon for instance) or pick an arbitrary value of say $40K that can be claimed against. You spoke about handouts, well the private sector are the kings of the free lunch and more.
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freediver
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Re: A fairer tax system?
Reply #4 - Dec 11th, 2008 at 12:28pm
 
Quote:
How so? Charge the tax on the goods arriving into the counrty.


First of all, whether you charge the tax as they arrive or on the shelf doesn't make any difference to the price paid or to government revenue (except of course for favouring local products). Our income tax system charges a higher percentage to higher income earners. Charging an equal percentage would place a (relatively) greater burden on the poor. The poor would go from paying 20% tax to paying 30%, the rich would go from paying 60% to paying 30%.

Quote:
I think they get away with far too much. A business exec's leased business car is for eg. a $330K Porche. It is claimed as an expence.


No it isn't. They sorted that out years ago. You have to pay tax on it.
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Jim Profit
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Re: A fairer tax system?
Reply #5 - Dec 16th, 2008 at 9:55pm
 
I'd totally love to revamp the tax system. I don't think taxes are bad, I just think they're buggered up and are a disgrace to the people who work so hard to put food on government's table.

It's not right that hard working people have to come home and do their taxes. I don't know if you Aussies have to do this, but we Americans have to pay an annual tax and figure it out based on marriage, how many kids we have, our income, all that crap. It's a pain in the ass and shouldn't be.


Income tax I believe is okay if it's done for us. Like.. before you receive your paycheck, so much percentage is taken out.

Sales tax is fine too. So are nationalized businesses.


I just can't stand having to work my ass off only to have to every year work a little harder figuring out my tax bracket so the IRS doesn't harrass me. Makes me deeply consider just waiting around with a shotgun, and letting the IRS come to me. Maybe that'll teach them to make a sensible tax plan when there's corpses rotting all over my yard.


The irony is they might want to fine me for litering.
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