Quote:
Originally Posted by xtremerus
An oldy explaining tax cuts.
How Taxes Work . . .
This is a VERY simple way to understand the tax laws. Read on — it does make you think!!
<SNIP>
And that, boys and girls, journalists and college instructors, is how the tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore.
Where would that leave the rest? Unfortunately, most taxing authorities anywhere cannot seem to grasp this rather straightforward logic!
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Got to love the internet, this one has been doing the rounds for years. So a restaurant owner (a government), is going to return to customers (tax payers), 20% of the value of their bill (tax), because they are all such good customers (the polls said it would get them re-elected).
Yer.. Right, like that would ever happen in either scenario.
I don't like paying tax and reckon I have paid way too much tax over the years, so I will play.
This is an American assessment (at least 10 years old) of how their tax system works, let’s put it in an Australian context.
If it was an Australian restaurant the $100 bill would divvy up like this; the first 3 men would pay nothing, the next 3 would pay $3.67, the next 3 would pay $14 and the richest would pay $47. That's our progressive tax system and the vast majority of Australians agree, "the more you earn the more tax you pay".
Now the restaurant owner (government) is going to cut $20 off the bill (cut 20% off our tax) and the internet fable above asserts that giving 35% of that cut to the top 10% of tax payers is the fairest way to do it!?
So in the Australian context; our government decides to give tax payers a tax cut to the tune of 35billion dollars (20% of personal income tax revenue). The fairest way to do this is to give 35% of the 35billion tax cut to the top 10% of tax payers. So just over 1 million Australians get about 12 billion between them?! And the other 95% of the population can squabble over the remaining 65%?! Does this seem fair to anyone or does it sound like someone trying to justify giving tax cuts to the most wealthy in our community?
And then there is this; "Tax them too much, attack them for being wealthy, and they just may not show up at the table anymore". So wealthy people are going to leave Australia if we tax them too much? I have paid heaps of tax in my life, don't like it but I am very happy to contribute to and live in this country (and I have lived in others).
If any of the top 10% of tax payers in this country want to leave because they can get a better life style somewhere else, don't let the door hit you on the a$$ on the way out...