Tax cuts are not a gender conspiracy

So I saw this tweet:

But I couldn’t work out what the story was. Today it is being reported in the Australian.

At the request of Labor and the Greens, the independent Parliamentary Budget Office today published its analysis of Stage Three of the tax cut plan, which would see the 37 per cent income tax bracket abolished in favour of a 32.5 per cent rate for all incomes of between $41,000 and $200,000 from July 2024.

Labor treasury spokesman Chris Bowen highlighted the PBO’s finding that $30 billion of the $41.6bn of Stage Three tax cuts would flow to men, claiming men would benefit over women at a ratio of 3 to 1.

Okay – something to work with.

Sigh.

At present the 37 per cent tax bracket kicks in at incomes over $87,000. If and when that bracket is abolished that means that everyone on an income between $87,001 and $180,000 will retain more of their income by paying less tax. People earning over $180,000 will also benefit. As it turns out there are more men earning higher salaries than women. By definition more men than women will benefit. To demonstrate this point I have plotted cumulative numbers for men and women across taxable income using data from the ATO.

The crossover point is at $89,421 to $91,299 – more or less at the 37 per cent income level. It seems to me that this sort thing sums up the intellectual bankruptcy of the ALP/Greens case against tax cuts. As Scott Morrison explains:

“The tax system doesn’t discriminate by gender. It’s an absolutely ridiculous proposition.

“It looks at someone’s income, not their gender. That’s what it does, and the more women that we have get higher paid jobs, then the more they will benefit from that arrangement.

“You know, you don’t get pink forms and blue forms to fill out your tax return. That’s not how it works. They’re one colour, they assess one thing: what you earn, and you pay tax on what you earn.

Remember – taxation is theft and the government is an equal opportunity thief.

One of the mechanisms used to confuse the public on taxation matters is to highlight trivially true consequences of the underlying maths. This is one of those times.

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22 Responses to Tax cuts are not a gender conspiracy

  1. Seza

    World ends tomorrow – women and children hardest hit!

  2. Percy Popinjay

    So, another alumnus of the school of Alberscreecheenomics unleashes yet another devastating tax policy critique.

    “Bwwwwwaaaaah! Tax cuts are a sexist waste of the government’s money!”

    You couldn’t make this sh*t up.

  3. OneWorldGovernment

    Remember – taxation is theft and the government is an equal opportunity thief.

    Says it all.

  4. John Bayley

    But what about the transgenders?
    How will they be affected?
    Has SHY worked that one out yet? /sarc

    (It seems the world gets madder every day…!)

  5. John Constantine

    The whole point of their revolution is to finance the fundamental transformation of the racist settler patriachy by the sin taxes aimed at the counter revolutionary clingers.

    Lowering taxes is a counter revolutionary thought crime.

    Comrades.

  6. W Hogg

    SHY believes that men pull 3x their weight in paying taxes. Wymminz are parasites.

  7. thefrollickingmole

    So she admits men pay more than twice the tax as the ladies?

    The real question, why are ladies so shit and sponge off men

    /sarc, just in case

  8. Slim Cognito

    I just received a nice letter from the ATO requesting payment from my business. The demand was expected but what really annoys me is the following motherhood statement on the letter:

    “When you pay this debt you will be joining the millions of Australians who pay their tax to support our country and the Australian way of life.”

    The Australian way of life is being destroyed and manipulated into something totally alien and they are gladly using our tax dollars to do so. Would be nice if I had any kind of say in what constitutes the “Australian way of life”.

  9. flyingduk

    It matters not, we are stone motherless broke and winter is coming, when it does, the Feds will be ruthlessly hoovering up any and all wealth they can find. Anyone with money can look forward only to ever increasing theft and predation. Tax cuts will never eventuate.

  10. mc

    Didn’t Hilary Clinton say that women and children where affected most by war because it was their sons and husbands that were being killed and wounded?

  11. H B Bear

    Parliamentary Budget Office you say? The Ponds Institute will be asking how they missed this manifest injustice.

    Turtle Head Bowen giving us a glimpse into a Peanut Head (?) future.

  12. Barry

    The current tax system is a massive transfer of wealth from males to females.

    Males pay by far the most tax. Females are by far the biggest recipients of benefits and public service salaries.

    So this just goes a little way to making it fairer.

  13. Genghis

    This BS is Progressive stupidity. Just like the statement that coal generators are massively subsidised. When one dives into the figures and find they are not subsidised the explanation appears that they are not paying a carbon tax so the community is subsidising them massively.
    You have to wonder whether any of them have ever had a non-government job!

  14. Greg

    So is what the SHY saying, that men are currently discriminated against because the pay most the tax, and these new rates go some way in redressing the balance but she would only be happy when men and women and transgenders pay the same amount of tax?

  15. Tator

    Barry,
    not only that, it is a transfer of wealth from the middle aged taxpayers to even older former taxpayers and the younger ones as the middle ages is where peak earning is for the vast majority of people.
    This will get worse when current generations retire as then it will be middle aged males paying for the older now single women who didn’t earn enough to accumulate adequate super and divorce settlements not giving them enough of their former husbands and to younger women with children via FTBA and B along with parenting payments. According to DSS 2017 stats, 58% of welfare recipients not including Family Tax benefit recipients as they are not broken down by gender, are female, there are more female aged pensioners, and more carer allowance, more parenting payments and still 14000 odd on the widows pension. Even the Youth allowance for students and apprentices has more female recipients.
    These benefits include health care card numbers and pensioner concession card numbers where the females outnumber the males by a fair margin. The only two where males substantially outnumber females are Newstart and Disability.

  16. Chris M

    So they pay less tax than men, how can you say it isn’t a sexist system?

    I want to ask the wailing toddler SHY about this.

  17. Marcus

    I don’t know why you’d even bother to rebut this claim. Just let Labor and the Greens run with it.

    All the way to the next election.

  18. Nighthawk the Elder

    Surely this must rate as Weapon’s Grade Stupid, even for the greenfilth.

  19. EvilElvis

    Equality! Equality! Our Kingdom for Equality!

    That’s exactly how it’s going. The Kingdom is being ransacked for equality. You’ll get your equality hard and fast at some point Sarah HandsoffBung.

  20. iain russell

    Cis-gendered males will get more benefit. The excluded and persecuted Q***********s will be ‘casualties’. Oh dear.

  21. Fred

    Women should be forced to pay 50% of all tax revenue in Australia.

  22. mh

    I just received a nice letter from the ATO requesting payment from my business. The demand was expected but what really annoys me is the following motherhood statement on the letter:

    “When you pay this debt you will be joining the millions of Australians who pay their tax to support our country and the Australian way of life.”

    Oh really?

    Julie Bishop Just Gave Rihanna’s Favourite Education Charity $90 Million

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