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:
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?