Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here�s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Fair tax cuts would be for all, not just high-income earners

By Andrew Bartlett - posted Friday, 7 May 2004


In life, death and taxes are the only certainties. In Australian politics, in an election year, a tax cut is just as certain.

Understandably, as standards in the health and education systems fall dramatically, recent polling indicates that most Australians would prefer the federal government to spend more money on services rather than tax cuts. The Democrats agree.

Last year the underwhelming "sandwich and milkshake" tax cuts cost $2.4 billion but provided the average wage earner with only a $4 a week tax cut.

Advertisement

As the budget draws closer, economists have been guessing that this year's tax cut could be four or five times bigger than last year's. A nice big tax bribe in the pockets of ordinary Australians as they go to cast their votes later in the year.

So should the Senate support a tax cut?

It’s not as simple as arguing for tax cuts or basic services. This government has had eight years to provide high-quality, affordable health and education systems but it has failed. A tired, conservative government can’t fix things it has broken.

The Democrats believe that by cutting government welfare for the wealthy, closing tax loopholes and concessions, an additional $7 billion a year could be used to provide the government services that Australians deserve.

The problem is that the tax system is full of concessions and loopholes that can be exploited by those with the financial ability. The burden for tax is then unfairly placed on average wage earners who can’t avoid their tax obligation and feel overtaxed.

We could put some integrity back into the tax system by abolishing concessions for company cars ($1 billion), negative gearing ($1.5 billion) and capital gains tax ($2 billion). If only the Liberal-National coalition or Labor had the political courage.

Advertisement

Abolishing tax concessions and loopholes to fund government services means that the surplus could be used for tax cuts - but fair tax cuts.

The Democrats believe the best way to provide a fair tax cut is to increase the tax-free threshold. This is the amount of income that is not subject to tax – currently it is only $6,000.

With the anticipated $6 billion for tax cuts, the tax-free threshold could be increased from $6,000 to $10,000. All taxpayers would benefit with an annual $680 tax cut. This is around $13 a week.

  1. Pages:
  2. Page 1
  3. 2
  4. All


Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

1 post so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Andrew Bartlett has been active in politics for over 20 years, including as a Queensland Senator from 1997-2008. He graduated from University of Queensland with a degree in social work and has been involved in a wide range of community organisations and issues, including human rights, housing, immigration, Indigneous affairs, environment, animal rights and multiculturalism. He is a member of National Forum. He blogs at Bartlett's Blog.

Other articles by this Author

All articles by Andrew Bartlett
Related Links
Andrew Bartlett's home page
Australian Democrats
Commonwealth Budget
Photo of Andrew Bartlett
Article Tools
Comment 1 comment
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy