Monday, March 8, 2010

Abbott's big tax

Tony Abbott has confirmed my  fears he is a big government conservative who doesn't mind raising taxes to pay for his favorite social program. This time its maternity leave.
Every woman who is in the workforce before the birth of her child should have the option of six months' parental leave or of a similar option for her partner,” Mr Abbott told an International Women's Day function in Sydney.

“A 1.7 per cent levy on the taxable income over $5 million a year of the 3200 companies that pay more than this would raise $2.7 billion.

“Rolling in the Baby Bonus, this would be enough to fund 26 weeks of paid parental leave at an annual income up to $150,000 for every woman who is in the workforce prior to having a baby.”

Lets be clear, it won't be the bosses who will pay the tax , it will be you and me. All those big companies will do is pass the costs on. The whole scheme is unfair, i The Baby Bonus had the advantage of treating all mothers equally but this scheme  will benefit well to do families the most as the payments its based on income.

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