You’re probably up to your ears in this tax reform issue by now, but just one more. It’s a good ‘un, promise. I’ve made a pretty graphic of who would lose and who would gain, and how, from the tax working groups’ proposals:
The huge tax breaks for the few people on very large incomes are paid for by the middle class and poor.
Distribution of income source.
Factors: TWG proposals all adopted. ie. 38% and 33% income tax rates replaced by 30% rate kicking in at $48,000. GST increased to 15%. Benefits and superannuation increased by 2.2% to cover GST increase. Proposed land and property tax changes adopted – cost split between lower returns and higher rents as per Treasury modelling by Arthur Grimes (or Grimey as he liked to be called). People spend 66% of gross income on products subject to GST – based on Stats average household income and spending figures (will be lower for higher incomes, so net tax cuts actually larger than given)