Catallaxy Exclusive – Correcting Taxes Discriminating Against Australian Public Servants

In Canberra today, the Australian Greens announced a new tax fairness policy to remedy a design fault in the current system.

According to the Greens, it seems that it is only Australian public servants (local, state and Federal) who have been able to negotiate salary increases.  As a consequence, because of their increased salaries, public servants are constantly pushed into higher tax brackets with the result that impost of bracket creep disproportionately falls on them.

Independent economic research has confirmed this phenomena. The Australia Institute economists have models showing that up to 80% of Commonwealth bracket creep tax receipts are paid by Australian public servants.

The Australian Greens believe that just because public servants earn more than private sector workers, they should not be required to pay more tax.  Australian Greens’ Treasury spokesperson Adam Bandt said:

Australian public servants should not be forced to carry the brunt of government spending, including spending on other public sector salaries.  This is a role for the private sector.  It is manifestly unfair that just because public servants have been able to extract additional salaries that they should be forced into higher tax brackets.

In response, the Australia Greens have announced the Tax Equalisation and Redistribution Designation (TERD).  Under the TERD, full-time, part-time and casual public sector workers will be subject to a separate tax schedule with a flat 15% rate for income above $500,000.  Public servant income below $500,000 will be tax free.

Opposition leader Bill Shorten has indicated that the Labor Party would consider this policy, but he also acknowledged that he was personally positively predisposed.  Shorten said:

As long as union members, particularly private sector union members are disadvantaged, I think the Labor Party would be able to support this policy.

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30 Responses to Catallaxy Exclusive – Correcting Taxes Discriminating Against Australian Public Servants

  1. Adam D

    Is this legit? Or is it satire I can’t tell anymore

  2. Tintarella di Luna

    Diddums I say

  3. Shy Ted

    You got me for a moment. Personally I’d have called it the Tax Unfairness Redistribution Designation. But that might not have got past the moderator. Fake news but funny. We are Spartacus!

  4. Dr Fred Lenin

    In a spirit of “fairness”important people should not pay any tax politicians. Party officials ,federal. State and local government employees and all journalists should be exempt from any form of tax to ensure “fairness”. . How do you expect to attract quality people like we have now if you penLise them with taxes,it’s only “fairness” .

  5. Dr Fred Lenin

    Perhaps it should be the Tax Unfairness Redistribution Designation or TURD ,more suitable name for anything the gangrenes and bandt were involved in .

  6. Craig Sargent

    Is there a link to this policy somewhere?

  7. Is that acronym correct. I think it should be TURD

  8. max

    no bureaucrat can pay taxes
    tax on a bureaucrat or politician is an impossibility, because he is one of the tax consumers rather than taxpayers.
    the bureaucrat’s “tax payment” is simply a meaningless bookkeeping device.

    Who benefits from taxation?
    It is clear that the primary beneficiaries are those who live full-time off the proceeds, e.g., the politicians and the bureaucracy.
    These are the full-time rulers.
    It should be clear that regardless of legal forms, the bureaucrats pay no taxes; they consume taxes.

    Additional beneficiaries of government revenue are those in society subsidized by the government; these are the part-time rulers.

    If a bureaucrat receives a salary of $5,000 a year and pays $1,000 in “taxes” to the government, it is quite obvious that he is simply receiving a salary of $4,000 and pays no taxes at all. The heads of the government have simply chosen a complex and misleading accounting device to make it appear that he pays taxes in the same way as any other men making the same income.

    The UN’s arrangement, whereby all its employees are exempt from any income taxation, is far more candid.
    by Murray N. Rothbard
    https://mises.org/library/man-economy-and-state-power-and-market/html/p/1375

  9. DaveR

    Brilliant. It took me two thirds through to realise it was a wind-up. Such is the state of the left in Australia, it could easily be true.

  10. Habib

    Why do they bother with the farce of taxing public employees? All it does is create more of their kind to administer the churn. If we must have the lazy, intrusive twats, just pay them a lesser amount and don’t bother with the charade- they have the hide to self-describe as “taxpayers” and get on their high horse over policy matters. And let them invest in an “industry” fund as well so their much-loved union can hose them.

  11. Mother Lode

    When I saw ‘Under the TERD’, I read it as ‘undeterred’.

    And why not? They are a pretty shameless lot, the unions and public servants, aren’t they?

  12. Tel

    There’s an old saying in Tennessee – I know it’s in Texas, probably in Tennessee – that says, fool me once, shame on, shame on you. Fool me… you can’t get fooled again.

  13. OneWorldGovernment

    All TERD/TURD jokes aside what would be really fantastic is to disallow any income tax deductions from so called Public Service income.

    They do not earn income no matter how much ‘tax’ they pay.

  14. a happy little debunker

    alan sivkoff #2737742, posted on June 15, 2018 at 2:37 pm
    Is that acronym correct. I think it should be TURD

    I too, would have thought it reads better as the Tax Under-equalisation and Redistribution Designation System (TURDS).

  15. Pedro the Ignorant

    Nearly sucked me in, Sparty.

    Any ludicrous plan attributed to the fruitcake Greens is prima facie totally believable.

  16. Old School Conservative

    Dr Fred, please address your spelling. It’s feral employees.

  17. Is that acronym correct. I think it should be TURD

    Gimme a break. Spartacus has to give it some semblance of possibility. Even the Greens would not implement a policy with an acronym of TURD. Labor maybe. Greens no.

  18. Dr Fred Lenin

    The central commitee of the National gangrene Lieberal Pardee under General secretary comrade turnbull will pass enabling legistlation next sittingof the peoples decromatic assembly,it is expected to pass in a unanimous vote .( old school conservative ,the name feral suits , to solve this infestation ,walls ,blindfolds ,rifles and willing shooters springs to mind ).

  19. RobK

    Benefiting Inter Government Tax Unfairness Redistribution Designation.  BIGTURD

  20. ACTOldFart

    Biggest flaw in this one was arguing that the Greens actually wanted to reduce taxation. They would never do that. In their sick world view, all resources belong to the Government, to be distributed according to Green principles (ie taking from the wealth creators and giving to the parasites) by an ever larger and more powerful bureaucracy. Any resources left to those who actually work and add value would be an act of grace and favour by Big Government

  21. Eddystone

    I’m a public servant, technically speaking, being an ambo.

    It’s true we do get great conditions.

    I salary sacrifice nearly all my salary into super, and being over 65, I can draw freely from my super, being effectively taxed at 15% on drawings.

  22. Eddystone

    I don’t think all public servants can do that, though.

  23. Squirrel

    There’s something exquisitely ironic about PS unions whinging about remuneration not keeping up with cost of living increases (being increases which, of course, have nothing at all to do…….. with the size and the reach of the three levels of Government in ‘Straya).

  24. Tator

    Eddystone,
    only organisations like ambos who are defined PBI’s can, coppers and firies cannot.

  25. Entropy

    Habib
    #2737746, posted on June 15, 2018 at 2:39 pm
    Why do they bother with the farce of taxing public employees? All it does is create more of their kind to administer the churn. If we must have the lazy, intrusive twats, just pay them a lesser amount and don’t bother with the charade- they have the hide to self-describe as “taxpayers” and get on their high horse over policy matters. And let them invest in an “industry” fund as well so their much-loved union can hose them.

    Public servants get taxed for one very good reason Habib: so they understand what it is like.

  26. EvilElvis

    I’m with Habib. Just give the useless pricks a net amount then cut the taxation department as half of Australia’s ‘workers’ now require no assessing. Then change voting rules to taxpayers only….

  27. DB

    Great satire. Could easily be Green-Labor policy!

  28. Jimf

    Cumulative Underwritten Nationalised Tax Scheme…a perfect acronym.

  29. JohnA

    Habib #2737746, posted on June 15, 2018, at 2:39 pm

    Why do they bother with the farce of taxing public employees? All it does is create more of their kind to administer the churn. If we must have the lazy, intrusive twats, just pay them a lesser amount and don’t bother with the charade- they have the hide to self-describe as “taxpayers” and get on their high horse over policy matters. And let them invest in an “industry” fund as well so their much-loved union can hose them.

    That reminds me of this bit of humour

  30. Alexi the Conservative Russian

    OMG its already April 1, 1919. My how time flies.

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