Willow Tree’s Neil Forscutt outlines a tax system that will benefit workers and government alike.
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The budget is in serious crisis or so they say.
Hockey is looking at a new deficiency of $51 Billion dollars. Most corporations are failing to pay tax.
The worry whingingly continues.
A few short years ago The Australian Taxation Reform Group (ARTG), after thoroughly researching their work, sent a submission to the Henry Tax Review.
That submission outlined in exquisite detail the existence of a tax system that would more than double the annual collected revenue of that time.
The public servants who had the task of studying the submissions for the various committee members did not have the expertise to evaluate the proposed system, nor did they have the correct figures on daily bank withdrawals, they simply relied on the figures for GDP.
They, of course, rejected the idea without even asking those who made the submission to explain their idea.
The simple idea is an E-Tax, i.e. we are taxed at the rate of 1 per cent at the time of a withdrawal of funds from a financial institution, banks, credit unions, building societies etcetera.
All you need to do is look at your last tax return and calculate 1 per cent of your earnings and then compare that figure with what you paid the tax man.
A good example is this: pay $1000 for a piece of furniture and the GST will be $100 over and above the PAYE tax that has been deducted already – at 1per cent your tax will be $10 only, as the GST and all other taxes can be dispensed with.
No more tax returns, no more GST returns.
It will mean an immediate pay rise for workers and it will save over 2000 businesses that the ATO puts out of business each year.
Now look at this.
Family Trusts will no longer be tax free, multi-nationals will now pay a decent share of the tax we collect, no money can be transferred out of Australia without having tax deducted, all those shonky business practices are eliminated and if we are firm enough other tax free entities, such as religion, can be taxed.
Copyright is held by ARTG inc. If you would like a copy of the document I quote from, just give me your email address and I will provide you with a link to download the document.
