We really should have inheritance ax, over say $3Mil, taxed at say 95%. You’re dead, you don’t need it.
Oligarchs carrying foward should really be intolerable, inequality is the death of a civilised society.
So say i own a house and my wife owns a house and we hit the 3 million dollar mark in land value in 40 years,
You think that 95 percent of that should go back to the government rather then or children?
Taxes like that typically apply only to money beyond the limit so if you hit 3 million and a dollar you would be paying 95 cents in tax on that dollar only.
Not sure whether it changes anything for you, but I think they’re proposing that each dollar past the 3 million be taxed at 95%. Both the 3 and the 95 being spitball numbers, of course. I’m not confident that 3 million will be worth much at all in 40 years anyway.
This comes up periodically and is absolutely true, judged as a liberal economy Australia is generally quite efficiently run with below average taxes and above average services. Which is no excuse for not trying to do better and indeed think outside the liberal box.
More interesting is that the graph “Breakdown of total tax raised in Australia since WWII” under “Other taxes” there is a spike in 1951. It seems to correlate with the USA stockpiling wool as part of their strategic reserve and a subsequent speculative bubble.
https://www.winton.com/news/australias-lesser-known-commodities-booms
The highest marginal tax rate for income earners is over 50%. And it takes effect at much lower incomes than other comparable countries.
Increasing the GST would cause double taxation, as people who earnt money at a higher income tax rate then spend that money at a time when there’s a higher consumption tax.
Increasing GST during a cost of living crisis would also just be insane. It ends up being a bigger burden on the poor than the rich. Increasing the cost of a shop at the supermarket right now would not go down well with the electorate.
The highest marginal tax rate for income earners is over 50%. And it takes effect at much lower incomes than other comparable countries.
In Australia? The highest marginal tax rate is 45%, and due to the nature of progressive taxation unless you have an absurdly high income most of the income of even high earners is taxed at a lower rate.
Source: I am in the top tax bracket and until recently did my own taxes
45% income tax, plus 2% Medicare levy, plus the incremental tax added as you move from no div 293 to full div 293. Plus you’re paying 10% GST on the things you buy. When you add all these together, earning an extra $100 can net you less than $50. You can see it when you play around with paycalculator.com.au
58.57% tax rate per my calculations. That’s not including GST.
I’m not going to spend my afternoon doing calculations to prove my point as what is required is doing the same calculations for other nations, the number you’re quoting is not what is meant by marginal tax rate for a start but the linked article provides the context needed.
Again, I have been in the top tax bracket for around a decade and have never paid more than 40% of my taxable income in tax without an accountant
Australia has lower sales taxes, lower income taxes, no requirement for private or employee provided health insurance. It is straightforwardly untrue that Australia is high taxing. Even if it were true then the level of public services provided would make it worthwhile.
Maybe the top tax rate kicks in lower but the tax free threshold is also higher than in most countries which is the correct balance.
Marginal tax rate is the tax rate you pay on each additional dollar earnt. The fact that the Australian government hides some of the taxes doesn’t mean you don’t pay them or that they’re not part of the marginal tax rate.
@DavidDoesLemmy
But you’re only paying that tax on the income above the threshold for that tax bracket. Rich people, and their dupes whinging about Australia’s “high taxes” can get in the bin.
@HalfEarthMedicYes, I understand. My comment was about marginal tax rate. It is true that marginal tax rate can go up to 58%
deleted by creator
75000/255000 < 30%
This is disproving your 58% claim above
You’re confusing effective tax rate with marginal tax rate.
The highest marginal tax rate for income earners is over 50%. And it takes effect at much lower incomes than other comparable countries.
I’m interested which countries?
Australia.
Australia has tax take effect at much lower rates than Australia?
deleted by creator
Oh sorry. Compared to USA at least. The top tax bracket starts much lower in Australia
