• IP addresses are NOT logged in this forum so there's no point asking. Please note that this forum is full of homophobes, racists, lunatics, schizophrenics & absolute nut jobs with a smattering of geniuses, Chinese chauvinists, Moderate Muslims and last but not least a couple of "know-it-alls" constantly sprouting their dubious wisdom. If you believe that content generated by unsavory characters might cause you offense PLEASE LEAVE NOW! Sammyboy Admin and Staff are not responsible for your hurt feelings should you choose to read any of the content here.

    The OTHER forum is HERE so please stop asking.

Is Australia a ‘high taxing’ nation? What is the responsible answer?

neddy

Alfrescian (Inf)
Asset
Is Australia a ‘high taxing’ nation? What is the responsible answer?
By Tristan Ewins
Posted Friday, 5 May 2006


While it is true that income tax in Australia is relatively high when compared with some OECD countries, it is also true that many other countries with low income tax burdens have very high indirect tax burdens. (For example, taxes such as the GST.) The consequences for equity here, are notable, with regimes of high indirect tax leaving the poor and average income earners worse off than would be the case under a more progressive regime of income-based and capital-based taxation.

That said, it is well worth comparing Australia with western Europe and the Scandinavian countries including Norway, Finland and Sweden. Those favouring a regressive “flat tax”, for instance, never fail to compare Australia with Eastern European economies which have adopted “bare bones” taxation regimes in the wake of the collapse of the Eastern Bloc.

Yet when it comes to assessing our overall tax system, we are informed by the Business Council of Australia that we ought adopt a “weighted” system for the sake of a distorted outcome favouring tax cuts, and that western Europe and Scandinavia are “irrelevant” given that they enjoy a lower combined GDP than the United States. When considered on a country by country basis, however, with western Europe and Scandinavia included, Australia is the eighth lowest taxing nation in the OECD.

In order to match Finland, for instance, which has rated as the most competitive economy in the world, Australia would need to increase taxation as a proportion of GDP by a massive 20 per cent. In other words Australia would have to raise taxation (and thus also vital expenditure on social and economic infrastructure) by over $160 billion a year. (Australian GDP is over $800 billion.)

Competitiveness is not simply a “race to the bottom” determined by who levies the lowest income and corporate rates. It depends on the quality of institutions and infrastructure, including education, health care, transport and communications as well as the level of innovation and the degree to which such innovation is actively supported by government.

The facts are simple. Australia is lagging in its provision of social and economic infrastructure. We have a higher education system that is weighted more and more in favour of “full fees” - with the consequence being that students from lower income backgrounds are deterred from study. Universities are driven into a culture of dependence upon corporate sponsorship in the wake of inadequate funding for research.

What is more, we have a secondary education system that is moving more and more towards defacto privatisation where accessibility and “equality of opportunity” for poorer households will become a thing of the past.

Finally, as we are constantly reminded, we have an ageing population - and no idea how we are going to afford the continuance of programs such as the Pharmaceutical Benefits Scheme (PBS), nor how we are going to provide quality, dignified aged care in the future (let alone in the present).

And yet, among this social catastrophe, the call is always for further corporate and PAYE income tax cuts. This contradiction between the demand for social services and the demand for ever lower levels of taxation, has been referred to as “the fiscal crisis of the state”.

At present, the solution to these quandaries is seen as being the application of Public Private Partnerships and market principles, and further drift towards the principle of “user pays” in all spheres of life. That PPPs are an inefficient means of providing infrastructure is an established fact.

...

You can’t afford significant boosts to expenditure in vital areas without progressive tax reform including tax increases in some areas - and this is the message that needs to become the “common sense” of the ALP well before the next election, with or without Beazley as leader.
 

neddy

Alfrescian (Inf)
Asset
Wage Facts
Full-time earnings in Australia averaged A$58,874 in mid-2008. (According to the Bureau of Statistics.)

If overtime and bonuses are included, average Australian earnings were $61,521 per annum.

The average full-time male wage (excluding overtime) in Australia is A$62,556 per annum

The average full-time female wage in Australia (excluding overtime) is $52,520 per annum.

Workers in the Capital Territory (Canberra) are Australia's highest paid workers while Tasmania has the lowest average wages.
Average Full Time Ordinary Time Earnings 2008
State Average Annual Wage
Tasmania $52,842
South Australia $54,563
Queensland $55,494
Northern Territory $56,989
Victoria $57,621
New South Wales $59,706
Western Australia $66,404
Capital Territory $68,978


Australia's best-paid workers are miners, with ordinary earnings averaging A$100,875 a year.
Average Full Time Ordinary Time Earnings
August 2008 By Industry
Business Sector Average Annual Wage
Accommodation, Cafes and Restaurants $43,201
Retail Trade $44,382
Wholesale Trade $55,250
Manufacturing $54,824
Personal and Other Services $56,441
Health and Community Services $56,768
Transport and Storage $57,543
Cultural and Recreational Services $58,131
Construction $59,327
Government Administration and Defence $61,391
Communication Services $61,459
Education $63,518
Property and Business Services $63,960
Electricity, Gas and Water Supply $69,768
Finance and Insurance $73,991
Mining $100,875
 

The_Latest_H

Alfrescian
Loyal
I think what's more important is not about higher income/corporate taxes per se, but the overall standard of living, the overall standard of the level of happiness and how strong the economy is when its stormy times.

It says a lot about Australia that even during such stormy weather such as now, Australia is predicted not to dip below the level of -1%- right up to 2010. Its a lot better than other countries which are going through at least -5% of negative growth, and possible negativity stretching out to the 1st quarter of 2010.

Its also due to the active response by both the federal and state governments to push for a stimulus package which would stem the tide of rising unemployment, and to keep the annual earning power at their current levels. They are also doing a lot of checking, to ensure that there's strong regulations to curb speculation in banking and sometimes, in housing(although housing is already quite regulated due to the fact that foreigners can't buy unless they are already residing in Oz).

So I think if the economy is resilient, and able to withstanding shocks, and with a strong active government, combined with common sense regulations on immigration et al, Australia is still a better country. There are still weaknesses though, and one of them is an over-reliance on exports of raw materials to China and other Asian countries. Australia will do better if they diversify their economy a bit more if they want to make it better.
 

imperialarms

Alfrescian
Loyal
and ur def gonna see higher taxes in usa + higher interest rates in years to come. the stimulus bill is simply transferring debt to later years. top bracket for us income taxation used to reach 70%++, almost guaranteed to go back there.
 

Aussie Prick

Alfrescian
Loyal
and ur def gonna see higher taxes in usa + higher interest rates in years to come. the stimulus bill is simply transferring debt to later years. top bracket for us income taxation used to reach 70%++, almost guaranteed to go back there.

Ah now you have hit the nail on the head. The interesting thing is Obama's tax policy. He has had to curtail the planned tax increases planned due to the recession and now he is workingin tandem with Republicans to keep income taxes low for everyone making up to US$250,000 per year.

Now the question is how low Obama keeps those taxes in the next four years. Thats what will be interesting. Whatever the outcome, migrants will still enjoy the lowest Western Income Taxation compared to Europe, Canada or Australia.

And yes, Interest Rates worldwide will be higher within the next ten years.
 

neddy

Alfrescian (Inf)
Asset
Honorable? Me? Ah, it always take me a moment to spot the sarcasm.

Doh! you spotted the sarcasm! Passed Test #1

Now, please help me to spot the taxes so that I can award you with a Doctorate in Aussie Taxes.

images


CORRECTION
There is a saying ... they are 2 things we cannot avoid in life.
THE DEVIL and TAXES
 

Aussie Prick

Alfrescian
Loyal
Doh! you spotted the sarcasm! Passed Test #1

Now, please help me to spot the taxes so that I can award you with a Doctorate in Aussie Taxes.

images


CORRECTION
There is a saying ... they are 2 things we cannot avoid in life.
THE DEVIL and TAXES

Patience. I am compiling it into 2 sections. 1)Income taxes and 2) hidden taxes: What every Emigrant needs to know.

I am telling you this so you can prepare your rebuttal thread(s). Where are they?
 

IWC2006

Alfrescian
Loyal
I think what's more important is not about higher income/corporate taxes per se, but the overall standard of living, the overall standard of the level of happiness and how strong the economy is when its stormy times.

You'll right, that explains its such a popular destination with skilled immigrants. Many foreigners have re-routed their migration destination to Australia after granting the near-useless Sg passpoers. It does not come anywhere close to the economy size of America but it scores high in terms of lifestyle, income level, nature, space, multiculture and a highly regulated legal and banking system.

With the downfall with the American banking system, Australia have not been exposed greatly by the subprime issue and its big 4 banks have all been fared pretty high financially, I think it should strengthen itself as the banking hub of Asia Pacific. However, its high taxation system and its strict foreign-talent policy might defer its expansion. That's always a good side and bad side of things. If Australia had adopted the Spore's style of open-FT policy, it could suffered with poor quality of foreign workers/immigrants and created a lot of anger within the local community...
 

neddy

Alfrescian (Inf)
Asset
You'll right, that explains its such a popular destination with skilled immigrants. Many foreigners have re-routed their migration destination to Australia after granting the near-useless Sg passpoers. It does not come anywhere close to the economy size of America but it scores high in terms of lifestyle, income level, nature, space, multiculture and a highly regulated legal and banking system.

...

Australian Immigration is overwhelmed - There are a large number of Indians waiting at our doorstep. And the worse part is that oversea Aussies are returning too.

Did they know that the recession is coming to Australia too?
 

The_Latest_H

Alfrescian
Loyal
Australian Immigration is overwhelmed - There are a large number of Indians waiting at our doorstep. And the worse part is that oversea Aussies are returning too.

Did they know that the recession is coming to Australia too?

-0.25% is much better than -5 to -7% in the US and UK, let alone Singapore, which could be as bad as -10%.
 

Aussie Prick

Alfrescian
Loyal
Australian Immigration is overwhelmed - There are a large number of Indians waiting at our doorstep. And the worse part is that oversea Aussies are returning too.

Did they know that the recession is coming to Australia too?

That's funny I thought the Aussies were leaving in bigger droves than ever before. Something about very high taxes and expensive costs, so its better overseas where they can have it better. Funny how the stats seem to contradict you.

http://skorcareer.com.my/blog/more-australians-leaving-country-for-work/2008/10/08/

More Australians Leaving Country for Work

Indians? tell it to the USCIS, they dont know what to do with 2 Million Indian applicants per year. But that's the US for you, EVERYONE wants to go.
 

jake

Alfrescian
Loyal
Wage Facts
Australia's best-paid workers are miners, with ordinary earnings averaging A$100,875 a year.

$100K for a mining job? Is it hard to get a job as a miner? I think I want to go to Australia to work as a miner!
 
Top