Swagman wrote on Dec 24
th, 2014 at 8:44am:
Big Donger wrote on Dec 24
th, 2014 at 8:01am:
You’ve already acknowledged your mistake, Swagman: you categorised high incomes at 1996 levels.
Today, $74,000 is the national average. Many households would be earning $180,000. The three tax scales you’ve referenced support this.
Tax is not a mistake. The ATO has very deliberately spread the tax burden across the income scale. The top end (over $180,000) contribute about 5% less than low and middle income earners, but this is just quibbling. Each population contributes almost a third of the pie.
There is no way anyone could surmise from your ATO figures that the rich support the tax system.
It's RMIT professor of institutional economics Sinclair Davidson's BCom, BCom(Hons), MCom (Wits), PhD, Grad Cert T&L (RMIT) data (not mine). He wrote a paper on the subject 10 or so years ago and regularly updates his data on his blog.
He's one of those rare commodities.....a non lefty academic..

The date is largely irrelevant. One could use 1996 or 2014 data and the result is still the same even with GST.
Now you can dodge around and try and deny the figures as much as you want but it won't alter the fact that a small percentage of taxpayers pay the vast majority of tax.
Big Donger wrote on Dec 24
th, 2014 at 8:01am:
There is no way anyone could surmise from your ATO figures that the rich support the tax system.
Really? After all the evidence and data provided..... that is your conclusion?

Here's I thinking you were having a '
serious' debate here?
Swagman, I've explained why average incomes count. In 1996, $75,000 was a fairly high income. Today, it's the average. At the risk of endlessly repeating myself, your ATO figures show that 70.2% of income tax is paid by middle income earners. High income earners contribute 26%. These tax thresholds are the ATO's, not mine.
The data I've been shown has been made up. Longy refuses to say how he comes up with completely different figures to the ATO, based on their own data.
This is a most serious debate, and I'm glad you're discussing it. Initially, I congratulated you for proving your point. After reading more closely, however, I realized you were basing your point on 1996 incomes, or so you said.
I'm happy to accept the facts here. I have no agenda to push. All I have is a belief that tax is deliberately spread across the board, and - again - your own ATO figures show this.
Unfortunately, you can't take this back. The ATO data is current and correct. It can't be spin any other way than what it is.
I accept, however, that $180,000 is well above the average income, but it is not "rich". As we know, the average is $74,000. The difference between the low tax threshold of $37,000 and the average is $37,000. To place the average squarely in the middle, we would come up with a range of $37,000 and $111,000.
To me, this shows the tax rates slightly favour upper-middle income earners (or those above $111,000). However, the percentages favour this income bracket, which contributes 37% of the income tax pie, as opposed to 33% on low incomes and 26% on high incomes above $180,000.
Again, there is no way you can skew these figures if you accept the average income as $74,000. If anything, they show that upper-middle income earners above $111,000 get off slightly lightly by being included in the same tax bracket of those above $37,000 (instead of those who earn more than $180,000).
What the ATO figures clearly show, however, is that middle income earners contribute the most to the tax pie. 26% is not a majority.
I also question whether incomes slightly over $180,000 comprise"the rich". A teacher, nurse or cop on $80 or $90,000 a year with a share portfolio and an investment property could easily earn $180,000 as a sole income. Most middle managers earn this in salary alone, and no one would call them "the rich".
I'm happy to discuss the criteria in more detail if you'd like, but you seem committed to defending a position you can't possibly prove, based on the ATO data you've provided.
When you want to engage in a discussion based on your very own sources, please let me know.