Our current tax system is overly complex and favours the rich and the trans-national corporations at the expense of ordinary residents. Below are the issues that contribute to this situation: The size of the ATO Legal Database is huge and complex. The Income Tax Assessment Act 1997 is 351 pages long. Corporations and the rich utilise tax loopholes and tax havens. With price inflation – “bracket creep” forces taxpayers into paying more tax. GST is an accounting nightmare for small businesses. GST is a regressive tax (i.e. the less you earn, the greater is the proportion that it takes of your income). Small businesses spend $28,000 per year on tax compliance. Small businesses spend 10 hours per week on tax compliance. If you earn enough money, paying tax can be optional. Tax Office data reveals that 70 Australians with incomes of more than $1 million each in 2010-11 paid no income tax, The statistics released last week show that the 70 earned $194 million among them but by the time their accountants had finished, that had been cut to less than $20,000 in taxable income, or $1 of taxable income for every $9999 that went untaxed. Since their average declared income was less than $3 million, and no one in their right mind gives a third of their income to their accountant, that implies their real earnings were much higher than $3 million. Most of their tax liability was wiped out by deducting tax losses from earlier years. In 2010-11, the 70 claimed $118 million in prior tax losses, and still had another $360 million left to carry over to use in future years. The cost of tax advice was their second biggest deduction. Only 20 claimed deductions for charitable giving, but they claimed $1 million each. Between them, they claimed $26 million in deductions for interest bills. Read more: ..nationallibertyparty.au/policies/eureka-debit-tax-policy/
Posted on: Tue, 14 Oct 2014 10:38:05 +0000
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