Manbush wrote: ↑May 20, 2019, 7:19 am
Papa why should they get blamed for blocking “good” laws such as tax cuts to higher brackets when many don’t consider that a “good” law, if they block ones like that I think they’d be acting on behalf of what many voters actually want.
Not sure if any polls similar have been done in Australia but in America the majority supported increases to higher brackets, the higher the bracket the more support it had.
Apples and oranges my friend.
Keep in mind they do have state income taxes with communist states such as california taking an extra up to 13% of the top and free states like the free land of Texas and another few at 0%. There is a whole range but you can probably average it out at a couple of percent.
Americas Tax rates
Tax rate Single Head of household
10% Up to $9,525 Up to $13,600
12% $9,526 to $38,700 $13,601 to $51,800
22% $38,701 to $82,500 $51,801 to $82,500
24% $82,501 to $157,500 $82,501 to $157,500
32% $157,501 to $200,000 $157,501 to $200,000
35% $200,001 to $500,000 $200,001 to $500,000
37% $500,001 or more $500,001 or more
Tax rate Married filing jointly or qualifying widow Married filing separately
10% Up to $19,050 Up to $9,525
12% $19,051 to $77,400 $9,525 to $38,700
22% $77,401 to $165,000 $38,701 to $82,500
24% $165,001 to $315,000 $82,501 to $157,000
32% $315,001 to $400,000 $157,001 to $200,000
35% $400,001 to $600,000 $200,001 to $300,000
37% $600,001 or more $300,001 or more
Australias Tax rates
$0 – $18,200 Nil
$18,201– $37,000 19c for each $1 over $18,200
$37,001 - $90,000 $3,572 plus 32.5c for each $1 over $37,000
$90,001 - $180,000 $20,797 plus 37c for each $1 over $90,000
$180,001 and over $54,097 plus 45c for every $1 over $180,000
with an extra 2 cents on top with the medicare levy.
So to put that in perspective an american man on 200k with a wife and kids at home is paying 32% plus state taxes (single or family).
An australian equivalent is at 47c
Also note that everyone pays tax on the first dollar, if you want to eliminate franking tax credits to retirees and whomever else, make the bottom tax rate 27.5 % or 30% wherever you want the corporate tax rate at and the bring the higher ones down so your not increasing your tax rate and then there is no more franking tax credit refunds.
Repeating myself, the bottom tax rates being so far below the corporate tax rate is the reason these refunds occur. Changing this would be fundamentally out of kilter with how income tax works. Obviously this policy doesnt effect me, but clearly in this country the biggest issue with out taxes is internationally, our highest tax rates are to high and are lowest tax free rate to large. Which creates to massive problems.
A massive effective tax rate for mothers and other people moving off benefits moving back into the work force - limiting their incentive.
A massive disincentive for productive effective people on higher tax rates to work harder.
That said, I freely concede that some european countries have even worse tax rates, some better some the same.
Keep in mind asia, our neighbours, the place where we belong all have far far lower tax rates.