You Pay Too Much Tax
Written by Administrator Wednesday, 26 August 2009 07:13
The Liberal Democratic Party is Australia's only party that does not appeal to voters based on the claim that it is better at spending our taxes.
The LDP believes Australians pay far too much tax and wants to see them substantially reduced. Since 1996, per capita taxation has increased by more than a third after allowing for inflation, not including the GST. As a share of GDP, taxes (federal and state) are 75% above what they were in 1972, when the Whitlam government was first elected.
While the Government needs some tax revenue to provide essential services, huge amounts are simply recycled by returning them to essentially the same people and businesses (minus large administration costs) in the form of government handouts.
The LDP believes Individuals spend their money much more productively than governments, and should keep more of their own money.
With Australians more prosperous than ever before, the number of people receiving government assistance should be falling. Yet the welfare state keeps getting bigger, and public servant numbers keep growing.
The LDP has a plan for a flat tax of 20% above a tax-free threshold of $40,000. The plan links to a welfare policy, which is based on a low income subsidy of 30% of the amount by which earnings are below $30,000.
The LDP would also shrink the size of the government so it was only involved in providing essential services. That would substantially reduce the need for government revenue, enabling substantial cuts in taxes of all kinds. Public servant numbers would be significantly reduced, with those providing valuable services likely to be reemployed by the private sector.