Progressive Pricing

Progressive taxes.  The progressives love them.  How about we employ progressive pricing to see how much they really like progressivism.

The biggest criticism of the recent income tax changes by the Commonwealth Government is that it would make the current tax table less progressive.  TAFKAS won’t call them tax cuts, because there will still be more taxes collected after the changes than before.  Treasurer Frydenberg may consider the words of Milton Friedman:

If a tax cut increases government revenues, you haven’t cut taxes enough.

However, given all the data the Government has on citizens and given the increased use of electronic payments and given the reduced “progressiveness” in the tax code, let’s increase the “progressiveness” in the price system.

On Harris Street Ultimo, there is a coffee shop.  It is literally across the road from the ABC and the UTS business school.  How does TAFKAS know this?  He was there today and saw ABC “journalist” Paul Barry, with SMH in hand cross, the road from ABC HQ and go into this coffee shop for his lunch.

Assuming the ABC does not provide a tax payer funded canteen (can’t be ruled out), it is likely that many of the highly paid ABC staff go to this coffee shop for their food and beverage.

As a pilot to test Albericinomics, how about compensating the budget for the loss of income tax revenue (paid by ABC high earners), this cafe charge higher prices for higher income earners and the difference is returned to the budget via either company tax or the income tax of the cafe owners.

The high ABC earners would pay $12 for their coffee whereas the low income earners would only pay $2.

Any bets to see what happens?  Will the high paid ABC types pay the higher prices (for the good of the community of course) or will they avoid the higher prices imposed upon them for the sin of earning more money and go buy their coffee elsewhere?

Gee.  What would happen?

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8 Responses to Progressive Pricing

  1. Bruce of Newcastle

    Will the high paid ABC types pay the higher prices (for the good of the community of course) or will they avoid the higher prices imposed upon them for the sin of earning more money and go buy their coffee elsewhere?

    The MEAA would negotiate a coffee loading for their contracts, to compensate them for the terribly high prices of Sinny which are unfair due to capitalism. If only we had socialism there would be no need for suffering ABCers to buy expensive coffee.

  2. sfw

    I hear talk that some of the ski lift companies are considering progressive pricing at peak periods/days, wonder how that will go down with the media (and other) elites.

  3. bespoke

    If a tax cut increases government revenues, you haven’t cut taxes enough.

    Why not?
    Extra money to employ, RND or/and more expendable pay for employees.

  4. egg_

    Are not Oz Electricity prices a result of Progressive pricing policy?
    They are now paying people NOT to use Electricity?
    Is that a free market?
    This IS an Economics blog, right?

  5. Howard Hill

    Are not Oz Electricity prices a result of Progressive pricing policy?

    Yep. They’re Progressively pricing us all to the moon.

  6. Ƶĩppʯ (ȊꞪꞨV)

    progressives are mentally ill

  7. ArgyBargy

    You forget the other aspect of progressive taxation – the spend.

    1) Charge $12 as they are high income earners but only half fill their cup, while the low earners pay $2 to have their cup overfilled.

    2) offer them only out of date light soy juice (it is NOT milk) because they can afford to pay for quality cows milk themselves.

    3) tell them they are having a soy chai tea instead, because the boss prefers that and thinks that they are better for you

  8. Amused

    I doubt ABC staffers pay for their coffee at all. They probably use a credit card that gets paid by our tax dollars.

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