Wednesday, April 15, 2009

We are taxed more

I don't think this will come as a surprise to anyone:
THE amount of tax paid by the average Australian has jumped by up to 40 per cent in just five years, according to new statistics.

In one state, the average person is forking out 62 per cent more in State Government and local council taxes than they did in 2003.

Figures released by the Australian Bureau of Statistics (ABS) reveal the average Australian paid $16,401 in taxes to local, state and federal governments last financial year - a 36 per cent rise since 2002-03.

However this makes no sense to me:
General manager of Taxpayers Australia Heather Schache said it was unfair that people in certain states were being slugged with such high taxes.

“There’s always been issues with state taxes… since the introduction of the GST,” Ms Schache said.

“It really is quite ridiculous that our states are operating with different tax systems.”

Why is it ridiculous ? Does she really believe if we had one tax system taxes would be less? Why?
We benefit from competitive federalism, if you think taxes are too high in one state you can move yourself or your business into a low taxed state. The fact that some states are lower taxed is an incentive for the others to improve.

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