Yep. Some dude. And his opinion remains his opinion. But it is not borne out by facts.
Taxation take is helping Howard battlers NEW figures have
shaken the widely held contention that the Howard Government is lavishing middle Australia with welfare while the genuinely needy go without.
The
tax and welfare systems are redistributing income from high- to low-income earners, who receive the lion's share of government assistance, new Australian Bureau of Statistics figures show.
The
average household receives more in government services than it pays in tax, with corporate taxes redistributed across the community.
According to the figures,
only 40 per cent of households actually pay any net tax, after the value of all government benefits is counted.
The
average household pays total taxes of $360 a week, but gets back $375 in both cash benefits and government services, such as health and education. Tax raised from the corporate sector covers the difference.
The ABS figures will make it harder for John Howard's opponents to criticise his administration of tax and welfare in the lead-up to the federal election, due to be held within months.
Peter Costello seized on the data last night as vindication of government policies, while Labor Treasury spokesman Wayne Swan refused to comment.
The Treasurer said the figures were evidence that the Government was fair to taxpayers and welfare recipients.
"The government policy of cutting income tax and increasing family tax benefits has lifted real disposable incomes across the board and has benefited lower-income earners substantially," Mr Costello said.
"Increases in spending on health have been made possible by disciplined economic management. This illustrates the way in which good economic management leads to a social dividend."
The figures, covering the five years to 2003-04, support the Treasurer's contention that real wages are rising, along with spending on services and benefits. Although the burden of GST hits poor-income households hardest, its effect has mostly been offset by reductions in other indirect taxes.
After taking account of inflation,
real incomes rose by 8.9 per cent over five years, while the value of government services rose by an additional 7.2 per cent, with
big increases in government spending on pharmaceuticals, community health services and other health benefits.
The improvement in the jobs market means that the Government has been able to cut the cost of unemployment benefits from an average of $21 per household a week to $15.
The savings have been redirected into an increase in family benefits - which have risen from $20 per household a week to $28 - and in the aged pension. The study also shows there is a massive recycling of tax and cash benefits from the rich to the poor.
The best-paid 20 per cent of the population, with household incomes of $120,000 or more, receive just $17 in family and other cash benefits, but pay $800 a week in tax
.
The poorest segment of the population by contrast pays just $22 in tax and gets $300 a week in cash benefits
.
High-income families still receive about $150 a week in government services, making heavier use of tertiary education than other groups and also using community health services.
With their children in private schools, high-income families make a much smaller call on the education budget. The most affluent households cost taxpayers $31 a week for school education, compared with support of $72.50 for the poorest groups.
Link John Howard created paradise for the whole of society with those best able to pay a heavy tax load paying it, those least able to pay a heavy tax load not paying it and the wealth re-distributed across society in a most equitable way.
His economics are world renowned and John Howard was easily the most successful modern PM Australia has had.
The poor have never had it so good, but that is changing fast.