Tax slavery ends tomorrow

According to Robert Carling and Oliver Hartwich the big day is tomorrow.

Every year, CIS economists look at the total tax bill at all levels of government – federal, state and local – and compare it with the total wealth Australians have created through economic activity. From this comparison, they calculate how many days of the year, beginning 1 January, Australians work to pay off their annual tax bill, assuming all they produce goes to the Australian Tax Office.

Tax Freedom Day marks the first day of the calendar year when the tax bill is cleared and taxpayers begin working for themselves rather than for the government. 

It’s a bit earlier this year than in previous years.

This year, Tax Freedom Day is few days earlier than a decade ago, which should be good news. After all, it means Australians have had to work less than before for the government.
On closer inspection, however, the news is actually worrying, says Dr Hartwich. The earlier Tax Freedom Day is not the result government spending less but a fall in tax revenue as a result of the global financial crisis.
Last year, the federal and state governments ran deficits of $59 billion. But today’s borrowing is nothing but tomorrow’s taxes. Eventually, we will have to pay the deficits government is running today.
So for an honest assessment of the real Tax Freedom Day, the deficit should be included in the actual tax revenue. This means the Tax Freedom Day for 2012 will fall a whopping 15 days later, on 20 April, putting it back to where it was before the global financial crisis.

Government slavery ends 20 April.

This entry was posted in Uncategorized. Bookmark the permalink.

12 Responses to Tax slavery ends tomorrow

  1. C.L.

    Interesting educative idea.

    They should follow through with a quantified argument about the preferred date of tax freedom.

    Australia Day?

  2. brc

    Does this include government-regulated increases in cost?

    When I start paying $400pa more for my electricity than the year before as a direct result of government regulations, does that count?

    ’cause I’m sure not getting to spend my money where I like.

  3. On your Marx

    how facile,

    They wouldn’t have made the money without government being there.
    government makes the markets work.

    It is like saying it is slavery buying goods and services.

    Tomorrow’s borrowing doesn’t mean tomorrows taxes either.

  4. C.L.

    They wouldn’t have made the money without government being there.

    Congratulations on that perfectly back-to-front analysis, Homer.

  5. John Comnenus

    That doesn’t seem right. Does that include GST, income tax and all the other taxes state and federal or is it just Federal income tax freedom day? Because otherwise it seems that they are saying that we pay on average 26ish% in tax. But of course I pay more than that as do many other people. Unfortunately a whole lot of people pay no tax at all and many more payless than me.

  6. wreckage

    government makes the markets work.

    Untrue. Markets work even without the rule of law, which is what you actually mean when you say “government” in this case, since government in and of itself does not at all make the markets work.

  7. Kelly of Kenmore

    Wreck, how does the market of the road or freeway work, without the “rule of law”?

  8. Anonymous

    So for a dishonest assessment of the real Tax Freedom Day, the deficit should be included in the actual tax revenue.

    Fixed that for ya.

  9. Rabz

    No it does not.

    The day is still several months off, depressing as that reality may be.

  10. .

    ???

    How is that dishonest? Who pays off the deficit?

  11. .

    Anon’s profile

    http://en.gravatar.com/anon4cec

    CITIZEN’S ELECTORAL COUNCIL? Are those crazy commie pricks still around?

    Haha loser, so when is La Rouche going to win the US Presidency and send us back to the Bretton Woods monetary system?

    You’re just a lunatic who wants billions of dollars spent on themselves for some frivolous reason – be it NBN porn or some jobs boondoggle.

    No doubt you are a pensioner or student and so actually paying taxes is foreign to you.

  12. Rabz

    Dot,

    I receive emails from the cec, they’re always good for a laugh.

    Here’s some highlights:

    STOP the British drive for WORLD WAR III!

    Does the Queen’s personal bank push drugs?

    Netanyahu to ignite a thermonuclear WWIII?

    More U.S. patriots fight back against Obama war drive

    WILL THE WORLD SURVIVE THIS WEEK? – THE THREAT OF THERMONUCLEAR EXTINCTION

    Isherwood: I support the Greek people against fascist banker tyranny

    Those deadly, Green Nazi solar panels

    And on and on and bloody on…

Comments are closed.