Tax
doesn't
get
much
flatter
than
"TaxOnce"
Every government requires funds to perform it's functions.
I propose a vastly simplified, but radical departure to the system, which for ease of reference I call TaxOnce: It is a once-per-year-only, fixed-amount tax for all electors (ie those eligible to vote), with a mercy clause for those unable to afford it.
Annual Fixed Tax
Every government requires funds to perform it's functions.
I propose a vastly simplified, but radical departure to the system, which for ease of reference I call TaxOnce: It is a once-per-year-only, fixed-amount tax for all electors (ie those eligible to vote), with a mercy clause for those unable to afford it.
Annual Fixed Tax
- Each elector (barring the mercy qualifiers) pays the exactly same dollar amount.
- There are no tax deductions, exemptions or rebates.
- No business activity is taxed.
- Your TaxOnce replaces all other federal taxes including income tax, GST, import and export taxes, Medicare levy, company taxes, petrol taxes 1 etc
- under current spending (which probably should be reduced) each elector would pay approximately $6,000 each (see "Questions about TaxOnce" below)
Mercy Clause
This applies if paying the tax would mean an elector would forfeit the basic necessities of life.
- Unpaid taxes accumulate, though the mercy clause may apply to some electors for their entire life.
- Tax debt cannot be transfered to other electors or posterity, though it may voluntarily be paid on an elector's behalf by a charity, relative or friend.
- Assets left upon the death of an elector would be used for any tax debt
What are the advantages to "TaxOnce" 
- Simple - there are virtually no loop holes to be exploited by dishonest people or crafty accountants. Your tax return could be done in 10 mins.
- Fair - every one uses the services of defence, courts, police, roads and every equally pays
- Incentive - once your annual tax is paid there is no penalty for working harder and earning more. Every extra dollar is 100% tax free.
- Cheap - The ATO would be dramatically reduced in size. Administration costs that are currently paid by Australians would be saved by Australians
- Accountable - because the tax is greatly simplified it will give the public an amount to latch onto. Come election time you are going to want to know how much tax candidates propose, and it will be obvious if that promise is not kept.
Questions on TaxOnce:
What about single income families?
Both parents would be liable for tax, though the mercy clause would consider the fact of dependants on a single source income. You might consider that this would disadvantage young families as they have the extra burden of children, yet also consider that those without children will need to save for their retirement (as they will not have children to support them in their old age).
What is the tax used for?
Since I oppose government welfare (vs private charity), the tax would be used only on the basics (including - defence, national roads, education of minors, police and courts). Let the citizens keep their money and decide which causes they will support themselves. The main focus is keep government small so you can keep the tax as low as possible.
No businesses tax? Won't this advantage big business?
Make no mistake - businesses pass on all costs to the end consumer, hence, all taxes that businesses pay are ultimately passed onto the consumer (who are taxpayers). If the market is free and open, industries that are making high returns will always attract competition, so extended profiteering is unlikely. (see Free Market Essentials)
Both parents would be liable for tax, though the mercy clause would consider the fact of dependants on a single source income. You might consider that this would disadvantage young families as they have the extra burden of children, yet also consider that those without children will need to save for their retirement (as they will not have children to support them in their old age).
What is the tax used for?
Since I oppose government welfare (vs private charity), the tax would be used only on the basics (including - defence, national roads, education of minors, police and courts). Let the citizens keep their money and decide which causes they will support themselves. The main focus is keep government small so you can keep the tax as low as possible.
No businesses tax? Won't this advantage big business?Make no mistake - businesses pass on all costs to the end consumer, hence, all taxes that businesses pay are ultimately passed onto the consumer (who are taxpayers). If the market is free and open, industries that are making high returns will always attract competition, so extended profiteering is unlikely. (see Free Market Essentials)
How much would TaxOnce likely be?
I use this simple formula:
Services divided by Taxpayers (= Electors minus Mercy Clause Electors)
Though I am not an economist, this gives me approximately $6,000 each. (See Footnote 2)
Basic Government Services: $42,693,000,000 (footnote 2)
Population of Australia: 20,743,371
Approximate Electors: 10,000,000
Probable Taxpayers: 7,000,000
A likely trend is that most young families will be exempt under the mercy clause early in life, while many people later in thier careers will be paying the annual tax plus older debt.
I use this simple formula:
Services divided by Taxpayers (= Electors minus Mercy Clause Electors)
Though I am not an economist, this gives me approximately $6,000 each. (See Footnote 2)
Basic Government Services: $42,693,000,000 (footnote 2)
Population of Australia: 20,743,371
Approximate Electors: 10,000,000
Probable Taxpayers: 7,000,000
A likely trend is that most young families will be exempt under the mercy clause early in life, while many people later in thier careers will be paying the annual tax plus older debt.
.
Why not tax those below 18?
To quote the mantra "no taxation without representation". It is unfair to tax youth when they cannot help choose the government who tax them. This grace period will also give minors some opportunity to study, save, travel etc.
To quote the mantra "no taxation without representation". It is unfair to tax youth when they cannot help choose the government who tax them. This grace period will also give minors some opportunity to study, save, travel etc.
see also: Price Linking
Related Keys: 02-EQU, 15-LIM, 17-PRO, 20-TRN
Footnotes:
1. Events or products that are damaging to others, if they cannot be immediately disbanded, should be taxed to make amends for their damages. See Price Linking
2. Referencing the 2005/6 Part 1: Australian Government Budget Outcomes Table 3 and including: Legislative and Executive Affairs, General Services, Government Superannuation Benefits, Defence, Public Order and Safety, Education, Agriculture Forestry and Fishing, Transport and Communication
1. Events or products that are damaging to others, if they cannot be immediately disbanded, should be taxed to make amends for their damages. See Price Linking
2. Referencing the 2005/6 Part 1: Australian Government Budget Outcomes Table 3 and including: Legislative and Executive Affairs, General Services, Government Superannuation Benefits, Defence, Public Order and Safety, Education, Agriculture Forestry and Fishing, Transport and Communication