Stop saying the rich should pay more tax, just do it

I am over rich people talking about that the rich should pay more taxes.

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Its not that I don’t think it is a good or bad idea (I recommended it in my pre budget ideas) but before they start telling others what is the right and proper thing to do they should start doing it themselves – practice what they preach.

In Australia most “rich people” own their wealth in entities. But these companies and trusts operate on a self assessment system. This means that the entity assesses what its tax is, not the Commissioner.

Therefore, if they really believe the rich should pay more they can do so. They just need to add an amount of income to these tax returns and watch their tax bill rise.

An easier option that even individuals can do is to just stop claiming any deductions. Throw away all receipts so you can’t make a claim.

The businesses they run could also stop claiming back the GST they incur. That would make a BAS a lot easier to prepare.

It not like the Commissioner is going to take you to court to repay you an amount…

An inspirational example might encourage other rich people to do the same…

There is nothing stopping them from doing what they say every rich person should do… So why don’t they do it? I would just be guessing if I suggested their heart was more interested in being known for saying it than actually doing it.

Don’t complain about fast food if you own a McDonalds and have a Big Mac in your hand…

And by the way the top 16.7% of the 12 million taxpayer individuals in Australia (who earn more than $80,000) pay 63.6% of all the income tax collected from individuals and the top 2.3% (who earn over $180,000 a year) pay 26.2% of all the income tax collected from individuals.

So if you think the top 16.7% are the rich and you earn more than $80,000, that makes you the rich…

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About Ken Mansell

As a stay at home Dad most of the week this is my way of pretending I am still the tax counsel of ASX and SEC listed companies, working at big 4 firms, working at the Federal Treasury, on the Henry Review and at Parliament House for the previous government.
This entry was posted in Funny Stuff, Tax Policy. Bookmark the permalink.

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