Stephen King asks a good question.
What sort of society has a taxation system that penalises those who value health and education highly? Australia!
He explains how that works.
Every person who buys PHI or who sends their child to a private school saves the government money. By using PHI they reduce the government’s cost of funding the public health system. By sending their child to a private school (which can be the local catholic school just as much as an ‘elite’ grammar) they reduce the government’s cost of funding the public school system. These people still pay their taxes – to fund the public school system and the public health system – and traditionally they have received a ‘partial refund’ through government grants to private schools and through the PHI rebate. But make no mistake. These people, who have the temerity to value education and healthcare highly, pay twice. They pay for the public system through their taxes and they pay again for the private services that reduce their need for the public system.
In comments On your Marx writes
Stephen’s example is merely an apology for keeping existing parts of middle class welfare in existance. Do not worry if you have the resources to pay for health insurance or private education yourself. We will get the State to help you out.
While mainstream that is confused logic. Private health insurance and private education subsidies are not middle class welfare. Public education and public health are middle class welfare. These items should be means tested and taxes cut accordingly.