Will someone please explain why we are paying so much tax? We know that the Government's coffers are bulging, thanks to the booming economy generating tax-paying jobs for more people – and at the same time reducing welfare payments – and fuelling higher company profits.
Monday, September 6th 2004, 8:59AM
by The Landlord
But what we don't know, in the absence of a clear explanation from the Government, is why tax cuts remain so firmly off the policy agenda. It's as if ministers are terrified that we might find something better to do with our own money if we get some of it back.
Any remaining economic rationale for the Government's swift move to raise the top personal tax rate five years ago has evaporated in the heat of successive big Budget surpluses.
To be fair, the move was always much more about politics than economics: it was felt the so-called "rich" earning more than $60,000 a year were not paying their share, so their top tax rate was pushed to 39 cents in the dollar from 33 cents.
