Joe Hockey is looking to find some vote winners in his next budget.
Joe Hockey is looking to find some vote winners in his next budget.

WATERCOOLER: Should the rich get more tax cuts?

TREASURER Joe Hockey is desperate to find the Abbott government a vote winner after some disaster-ridden weeks in the polls.

So it's not a surprise he's spruiking income tax cuts for us all, including the rich.

The Treasures says bracket creep - where inflation increases wages into the next tax bracket - is pushing middle-income earners into higher brackets.

For people paying 47 cents or more in the dollar in tax, there's very little incentive to work longer or harder.

But with an ageing workforce, one of the real challenges facing the national economy is productivity.

Mr Hockey argues that cuts to income tax, including for super rich, will help the economy by encouraging people to stay in the workforce for longer.

He says that without tax cuts, almost half of all taxpayers will be in the top two tax brackets in a decade.

"My view is that our tax system is holding us back from reaching our end goal of a stronger economy,'' he argued in a speech widely released to the media.

"The price we pay for failing to strengthen and improve our tax system is less income than Australians should receive and fewer jobs than Australians could hold.

"Our existing taxation system is increasingly reducing the incentive for many Australians to work harder, earn more, invest and, in the end, give our families greater financial security."
 

Do you support a cut to income tax from Joe Hockey?

This poll ended on 24 September 2015.

Current Results

Maybe. But aren't we in the midst of a debt crisis?

12%

Definitely. The less tax we pay, the more we spend in the real world

30%

Only for low to mid income earners. The rich always avoid paying their share

43%

No, if we need to be lifters not leaners, we need to pay more tax not less.

13%

This is not a scientific poll. The results reflect only the opinions of those who chose to participate.

There's no doubt Australia's tax system needs an overhaul, especially when you see that our highest marginal tax rate is well beyond other countries.

Mr Hockey argues that our tax system relies too much on high income earners.

Perhaps it does.

But a more fundamental failure in the system is the fact that large companies, including Google, Apple, and other online giants, fail to pay their fair share of tax in this country.

The other concern, of course, is that tax cuts for the rich could mean cuts in services for the poor.

Mr Hockey needs to detail exactly what further cuts in services he has in mind.

WHAT DO YOU THINK? Should there be a new round of tax cuts for Australians, including those in middle to high income brackets?

Or should taxation reform first target companies not paying their way. Join our watercooler conversation today by leaving your comments below.

 



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