If the government really wanted to help low and middle income earners, the tax free threshold should be raised and then indexed to the Consumeer Price Index.Something to look for in the next budget?
2006-12-28 16:13:51 · 2 answers · asked by emyadeno 1 in Business & Finance ➔ Taxes ➔ Australia
Yes it should. It would make lots of ppl happy. They would spend more therefore the gov would earn more in sales taxes or gst!!!!!
2006-12-28 22:05:01 · answer #1 · answered by Billy T 5 · 0⤊ 0⤋
No, It wouldn't work. Voodoo economics AKA: the trickle down effect, has never been supported with any actual evidence. Is you cut $10 billion in income taxes...you will not recieve anywhere close to $10 billionin sales tax. Also, the sales tax that is collected is great...but that money is also going overseas because the products purchased are mqade overseas.
Its a great theory (and I woud spport it since I'm middle-income) but the economic impact (in the long run) would be horrific on our economy.
PS: I'm was a business/economics major and I spend 2 whole semesters running case studies on Voodoo economics. (not just because I thought the name was cool)
2006-12-29 08:45:19 · answer #2 · answered by Blicka 4 · 0⤊ 0⤋