In the Commonwealth Budget Estimates for 2006-07, the figures were:
Direct Taxes - $165.3 billion
Indirect Taxes - $31.8 billion
TOTAL - $217.1 billion
This averages out at over $10,000 for every man, woman and child in Ausrralia, (assuming a population of 21 million)
But, under the creative accounting used by the Federal Government, the figures above do NOT include the revenue for the Goods and Services Tax (GST), which raised another $40 billion, adding a further $2,000 to the average per capita tax take, making it an approximate $12,000 per head, or $48,000 for the average father, mother and two children.
But that is not the end of the story! The States also raise their own taxes and imposts; and, of course, your local Council also wants a small contribution if you dare to own any property.
All Federal Income Tax is raised under a Taxation Act which Treasurer Costello was going to simplify, but which is now six times longer than the King James Bible, under an Australian Tax Office which is the approximate size of the Australian Armed Forces. In addition, each and every businessman in Australia is an unpaid tax collector, struggling regularly and for long hours with his BAS (Business Activity Statement) as well as collecting tax for the ATO from any wages he pays to his staff.
So complicated is the whole procedure that every business has to procure and pay for the services of an accountant, to save him from heavy penalties for any error he might otherwise make. If the collection and payment of taxes is a "government-job-creation-scheme", it must be the most brilliant one ever invented!
While extravagant claims are made about Australia's "booming economy" the real figures are somewhat different. Yes, the Federal Government has eliminated its own debt (except for about $100 billion in unfounded liabilities in the form of future superannuation and pensions for politicians and public servants). This has been achieved by selling assets such as banks, airports and telephone companies, previously paid for by the taxpayers. At the very least this should have resulted in regular tax reductions and tax simplification.
DEBTAs Australia's once-legendary manufacturing sector, and its farming sector, have been squeezed, mangled and contracted, Australia's huge mineral resources sector has been allowed to burgeon as the Nation's biggest export-earner by far. It is almost completely foreign-owned. The laziest politicians in the world have been allowed to ride on the back of our legendary mineral wealth, raking in royalties which are never used to lighten the load on other sectors. So, like the U.S., the once self-sufficient Australia lives on imports of consumer goods and, increasingly, food, paid for by our frighteningly huge Foreign Debt (At the end of February, this had reached $512 billion).
Australians on average live from week-to-week by debt. At the end of December 2006, Australia's Credit Card debt alone was just touching $40 billion. Household debt was not far short of a trillion dollars! ($962 billion)
When the Coalition under John Howard came to power in 1996, the ratio of household debt to annual income was 69 per cent. Ten years later it is about 160 per cent. When the Howard Government came in, Australia's Foreign debt was $180 billion. Today it is $512 billion. Is this what is meant by a "booming economy? Some boom!
If current boom conditions give way to any recession - and many are saying this is imminent) ~ Australia will be hit harder than most. The money-lender will be knocking at every door! Even our politicians might be forced ~ heaven preserve us! ~ to curtail their lavish life-styles!
WHAT DO WE DO?An old Chinese saying says, "When struck by a thunderbolt it is too late to consult the Book of Dates!"
The thunderbolt is perilously close. A few precautionary steps are urgent. The tax-burden must be lifted and simplified if Australia's producing industries are to be revitalized. The Debit Tax is the first simple step in the process ~ SO LONG AS IT REPLACES ALL OTHER TAXES!
