Tuesday 29 April 2014

Abbott to increase income tax?

This is from News Corp so probably needs to be taken with a few grains of salt, but it is interesting. Perhaps News Corp is trying some Abbott damage control in the face of howling protests about his attack on the poor?

Anyway News Corp is suggesting that workers earning $80,000 a year and more "could" be "slugged" with a 1% increase  in their income tax:
News Corp Australia reports workers earning between 80-thousand and 180-thousand dollars a year could be slugged an extra one per cent tax on their incomes for four years, while those earning more than 180-thousand will pay an extra two per cent. 

Australian Chamber of Commerce and Industry CEO John Osborn opposes the idea, telling ABC radio a levy to help pay down government debt would be an unwelcome surprise. 

But Australian Council of Social Service boss Cassandra Goldie says Australia is one of the lowest taxing countries in the OECD and needs to strengthen its tax base. 

Australian Greens leader Christine Milne doesn't support a debt or deficit levy. "I'm not prepared to support a levy," she told ABC radio. 

The government had itself increased the deficit by abandoning the carbon tax, and depriving the budget of billions in revenue, Senator Milne added. 

"And suddenly Tony Abbott says to the community, 'sorry you all have to pay'," she said. more
Whether this comes about or not is another thing. It appears to me to be a bit of Murdoch media management, but I may be wrong. In any case, my position is the same as my opposition to any cuts to pensions and the poor. Namely, that it's unnecessary and shouldn't be implemented as the "budget crisis" is an Abbott gov creation. Our economy is in good shape.

Alternatively, even if there was a budget crisis, there are many other areas (gov subsidies for example) that are well worth the chop, without having to lay into taxpayers and the poor.

Perhaps though the most absurd thing about it is the Orwellian aspect to what this income tax increase would be called; a "debt levy". Well, if someone is earning $80,000 a year I'd imagine they'd be well educated intelligent people, who know an income tax rise when they see it. 

And don't for a minute believe Abbott when he says it'll end after 4 years *cough* 



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