Australia Has A Tax Problem
Australia has a tax problem and I am going to suggest something to remedy that. The ATO is in a hole for some $52 billion, mostly from Australians who owe back taxes. In the most recent financial year that we have records for, some 91 Aussies who earned more than a million dollars paid no tax on that income at all. They managed to do this via creative tax accounting paying professionals hundreds of thousands to make it happen. These folk would rather do this than pay their fair share of tax on their earnings. There is an American flavour to this – the idea that the rich shouldn’t have to pay a lot of tax is promulgated by the wealthy and the GOP in the US. America has a national debt of $37 trillion and this correlates with the reduction of taxes on the wealthy over the last few decades. The top income tax rate was in the 90% range in the 1960s and that has come down to 37% as of now – that is a huge drop. Company taxes have come down substantially, as well, in recent times. Wealthy individuals and corporations are not paying their fair share of tax.
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