Taxpayers giving the rich a cheap ride: survey

Date
    January 19, 2010


Most Australians believe high-income earners do not pay enough tax, and nearly all think low- and middle-income earners pay too much, according to a survey by the progressive think tank Per Capita.    

As the Federal Government considers the recommendations of a comprehensive review of the tax system by the Treasury Secretary, Ken Henry, the survey findings suggest a clampdown on tax lurks for high-income earners and or tax cuts at the lower end would be popular with voters.

Support for a more progressive tax system was found to hold across all age groups, income brackets, education levels and political groups. Even high-income earners said their peers paid too little tax, although hardly any would admit that they personally paid too little tax.

''The unequivocal finding is that respondents believe the tax system favours wealthy taxpayers at the expense of lower-income ones. In short, Australians want a more progressive tax system,'' the survey's authors conclude.


An overwhelming majority of the 1000 people surveyed also wanted the tax system to be made simpler. Given a choice of only one reform, people's preferred option would be to centralise federal, state and local taxes (34 per cent agree). This was followed by reducing the number of taxes (24 per cent), a simplification of deductions, rebates and exemptions (20 per cent) and a streamlining of personal tax returns (13 per cent).

The Federal Government's strategy of running a budget deficit to stimulate the economy out of recession was also found to have strong support, with 61 per cent agreeing. Only 22 per cent supported debt reduction over debt-funded stimulus.

But while respondents wanted this debt paid off over the economic cycle, 90 per cent said they wanted more money spent on health and 82 per cent wanted more for education, highlighting the difficult political task for the Government in reining in spending in an election year.

The co-author of the survey and executive director of Per Capita, David Hetherington, said high-income earners had access to a range of deductions and concessions that reduced the amount of tax they paid. Obvious targets for reform were superannuation salary sacrificing - where a flat rate of only 15 per cent is paid on voluntary contributions - golden handshakes for executives and fringe benefit tax.

''These things tend not to be available to lower-income earners,'' Mr Hetherington said.

The ideal approach would be to abolish such deductions to broaden the base on which taxes could be collected and then reduce the overall rates of tax paid, particularly at the low income end. While also benefiting those up the income scale, this would deliver the biggest proportional cuts to lower-income earners.

Of those surveyed, 53 per cent said high-income earners paid too little tax, while 95 per cent said low- and middle-income earners paid too much tax.    



Read more: http://www.smh.com.au/business/taxpayers-giving-the-rich-a-cheap-ride-survey-20100117-meeb.html#ixzz2GTnDCvQy

To get back to surpluses we need to reinstate Howards record taxation and transfer govt debt back to record household debt..I know the Libbos wont mind 

Quote:


and the articl is THREE YEARS OLD... getting desperate, dole-bludger?

Do High Income Earners Pay Enough Tax,

I would think that many do.

However I think that we all know that many don't.

gold_medal wrote on Dec 30^th, 2012 at 7:59am:


GM if you had bothered to read the article you would find that high income earners believe the wealthy (excepting the self, of course) pay too little tax.

Does that mean you consider the rich envy the wealthy?

Well, no, they don't pay enough tax!

However, they will not be alone there, as a great deal more, will be required of much fewer, in the years to come.

And, it certainly should not come down to just Tax Rates, the whole system needs to be revamped, to get rid of many tax loopholes, thru which Mack trucks are regularly driven!

AND, it's not just about Revenue, it's also about Expenditure & how we intend to drive Productivity, to allow for the "new norms" in Demographics & Energy!

Enough tax for what? 

What good is it increasing taxation, when it's used ridiculously inefficiently and haphazardly anyway?  You could increase the tax take 1000% and it still wouldn't be "enough".

I earn around $800 gross a week and pay $200 tax. I doubt the rich are paying 20% tax on their net income.