Tis the season to be taxed

Tis the season to be taxed
Tra-lah-lah-lah-lah.  Lah-lah-lah-lah.

It seems to follow a cycle.  Shortly after an election.  Close to the end of the year.  A bit of quiet in the news cycle.

And bang, bop, zow!  It’s time again to talk tax reform.  And what is “tax reform”?

It starts with increasing the GST for sure with a promise to consider to investigated the possibility of maybe sometime in the future, if the weather and conditions permit, to review a study into the feasibility of having a conversation of reducing some taxes some time in the future, such taxes and future timeline to be determined by a review and investigation of the feasibility of the feasibility of studying the feasibility of a tax cuts.  Some time later, but in the mean time increasing taxes now.

Tra-lah-lah-lah-lah.  Lah-lah-lah-lah.

But here it the trick.  When the discussion turns to tax reform, what is really being discussed is maybe, just maybe decreasing some tax rates with the objective of increasing overall tax revenue.  Basically, a pea and thimble trick to grow the state while pretending to cut taxes.

Much like the so called Morrison tax cuts which will give back some bracket (inflation) creep to income earners.  Yes.  Return some of the inflation the Government has collected in tax.   It’s like magic:

In addition to taxation being the only form of revenue legally permitted to be collected through physical force, the interaction of taxation and inflation offers government finances a magical privilege. Through inflation, governments can generate increased tax revenues without increasing tax rates.

Wage price inflation generates additional income tax, and payroll tax. Consumer price inflation generates additional goods and services tax, and fringe benefits tax. Asset price inflation generates additional land tax, capital gains tax, and stamp duty. And even when taxes do not auto-inflate, governments index such taxes.

It’s no wonder the RBA has an inflation target of 3% and why they are talking about printing money.  Inflation is GREAT for tax revenue.

But TAFKAS digresses.

One day, possibly in TAFKAS’ dreams, there might be a discussion on spending reform rather than tax reform.

Rather than bigger and better ways to extract money, by force, from citizens, there can be a discussion on what government should stop doing and what they can do less of and, god forbid, better.  Let’s start with this list as described in this post.

Here are some comments to this post:

From kingsley:

Director – Old Parliament House – $360K!!! that would be a ridiculous amount for the Director of the New actually being used for its primary purpose Parliament house.

$360K to make sure the dunnies get cleaned, the security alarm gets turned on at night and the lights turned off.

From duncanm:

$70M of salaries — assuming there’s one of each (which in many cases, there’s more than).

This is a frightening portal into the world of waste that is government.

Let’s take, for example, the “Chief Executive Officer, Aboriginal Hostels Limited” ($332k)

Who are they, you ask?

Well, they provide accomodation (sic) to Aboriginal people for various needs – eg: while visiting hospital, emergency accomodation (sic) etc.

All very laudable.

From their 2018/19 financial report:
$55M running costs – courtesy of the taxpayer – provide a whopping 1900 beds, with an occupancy rate of about 45%.

That’s $29,000 PER BED, or $64,000 PER OCCUPIED BED.

Holy crap.

Holy crap yes.

Tra-lah-lah-lah-lah.  Lah-lah-lah-lah.

Tax reform to fund this stuff and more.  Yeah right.

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5 Responses to Tis the season to be taxed

  1. Roger

    And the elephant in the room, the $1bn + per annum media-propaganda complex that is the ABC/SBS/NITV.

  2. faceache

    That cost of beds is about the same as prisons. Aboriginal Hostels limited isn’t a euphemism is it?

  3. FelixKruell

    Agree entirely on the spending side.

    But they’re always going to tax us to some extent, so I prefer that tax be collected as efficiently as possible. That’s the tax reform part. Something we haven’t seen for almost two decades now.

  4. Percy Popinjay

    For the last f*cking time – more and higher taxes is not “tax reform”, supplicants.

  5. John A

    Roger #3200540, posted on November 3, 2019 at 12:07 pm

    And the elephant in the room, the $1bn + per annum media-propaganda complex that is the ABC/SBS/NITV.

    Yes, that’s definitely an ABC/Senity isn’t it?

    Muddy, have I invented a word for the Catictionary?

    ABC/Senity – the obscene cost of running a government propaganda outlet as the Ministry of Truth.

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