My Suggestion For Tax Reform - Taxpayer Chooses!

[Riksta]

I've had this idea for quite a while now, and I have posted elsewhere and I apologise if I have posted this here before but I really can't remember doing so, so I hope its new to you all!

What I am putting forth to you all today, is something I like to call the "Taxpayers Choice" tax system. Basically, you still all pay the tax on your income as normal, but with a twist. You get to choose what your taxpayers dollars go towards.

Now, to stop some services getting cut altogether (like Centrelink, as I'm sure nobody would allocate any percentage towards them!), 50% of the tax you pay automatically goes the normal way, straight to the taxman.

But here's the joy, you actually get to decide where your remaining 50% goes.

So if you use the roads a lot and are a car enthusiast, you can give 10% to transport. This leaves 40% for you to play with. You can split it up into whatever you want with a minimum of 5% to any given "department". If you want to give your whole separate 50% to a department then that's fine too.

Don't have, or plan on having kids? Why pay taxes for schools that are now of no use to you?

Sick of dole bludgers getting cash they shouldn't, and bogans having 26 babies each for a baby bonus? 0% to the departments responsible.

Are you a politician? I'm sure you would donate your whole 50% to whatever it is that the politicians travel & other allowances come out of!

Think we need bigger & better weapons for the army/navy/airforce? Give some to them!

Of course this system only relates to the tax on your income. All other taxes & levies (GST etc) still go to the "normal" pool and are non-allocatable.

So, what do you think? Would you go for a system like that? What would you allocate your money to?

[XD 351 Ute]

Best idea ever. I'm getting me a new fire truck.

Ed

[|||]

great idea. rich people should have more say in running the country than poor people.

[WMD351]

Yeah why not. Can't be any worse then the current system.
Damn Riksta, that avatar is absolutely mesmerizing. Just like a train wreck, I know it's terrible to watch but I just can't look away.
(note to self, must find out where I can buy parachute pants)

[data_mine]

great idea, but it won't work. People by nature are selfish and short sighted.

e.g. I'm young and healthy now, so 0% to hospitals. in 40 years time, when the health system is run down, and now I'm old and decrepit and it's too late to give more money.

[flappist]

Hey here is an idea.....why not elect someone who will do what you want rather than just vote for "the party".

[vztrt]

Originally Posted by flappist

Hey here is an idea.....why not elect someone who will do what you want rather than just vote for "the party".

Because my party is always right!!!!!!!!!!!!

[SSD-85]

Originally Posted by data_mine

great idea, but it won't work. People by nature are selfish and short sighted.

I agree. Its like communism, a perfect system until you introduce humans. Thats why I chose No, as with all generalised systems some win in some things, others lose in some things. But unfortunately with each passing day, that precarious balance is tipped into the favour of those who abuse their power to change it.

[loosey]

I can't see this working, as has already been said people will only put money in towards things that benefit them. What's more interesting money for stadiums and swimming centres or money for waste management?
There would be huge surplus' on somethings and deficits on others..

Originally Posted by XD 351 Ute

Best idea ever. I'm getting me a new fire truck.

Ed

I'll put money in too! The trucks at our station are both 20 years old.

[FCleader]

I don't think it would that bad considering that it is only 50% of income tax and that the other half and all other revenue would still be allocated the same way it is done now.

Maybe with a few refinements like the a report on what departments are doing well and which departments aren't doing being made available to the tax payer, then some people might be more inclined to divy up their share to departments that need the money.

Also aren't thing like waste management and fire departments funded and controlled by state and local governments, with income tax going to the federal government?

And before anyone says anything I do realise that people are selfish and would still put money towards things that only benefit them, but there are people out there who aren't like that and would distribute their money more evenly or to the departments that need it most.

[fmc351]

^^^while income tax is the sole domain of the fed, its is then redistributed back to the states less the needs of the fed (essentially). Further, in order to allocate funds in workable proportions, you would need to know where every other tax payer is allocating their money.


To even have a snowballs chance in hell of not sending the nation down the gurgler, each of us would need to do some 'light' reading of the relevant state and federal budget papers, or wish list as it would then be.

Im guessing you'll be well rested anyway. zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

[FCleader]

If only the average Australian would take more interest in the politics of this country instead of just voting for whoever is most popular, by doing a little 'light' reading. Although in saying that I don't do that much more reading at all haha..

Maybe instead of letting people allocate half their income tax, allow them to make suggestions as to where it should go, so the government can get a better understanding of what the public wants more money put into.

[aussie muscle]

won't work. roads are funded by STATE revenue. same as hospitals and schools. Most people have no idea how our government works, as the three biggest issues in the FEDERAL election was the three above...

i think a better system woudl be to get rid of the state govt all together...

[data_mine]

local government is the most corrupt/useless I'd prefer to see it go before State.

[grandpa_spec_F6]

Originally Posted by flappist

Hey here is an idea.....why not elect someone who will do what you want rather than just vote for "the party".

Never question the party!

I agree, selfishness would mean car enthusiasts would end up with no health care 20 years down the track, but at least we'd be rid of the bogans.... right?

If I had to decided where the money went, sure, at the moment I'd put it into the roads, because that's where my passion is, however I've experienced first hand how shocking our public health system is so I would be one to put money towards this.

The above is a generalization for sure, but I think the majority of people would have a 'little' common sense and donate money towards such things like hospitals, emergency services etc.

I like the idea of politicians having to fight for their funding by appealing to the public though, although apparently they already do... by telling massive porkies.

[fmc351]

Originally Posted by aussie muscle

won't work. roads are funded by STATE revenue. same as hospitals and schools. Most people have no idea how our government works, as the three biggest issues in the FEDERAL election was the three above...

And federally collected income tax revenue is one source of state revenue. The federal government allocates amounts to the states to use for particular purposes, like hospitals, roads and schools.

Originally Posted by aussie muscle

i think a better system woudl be to get rid of the state govt all together...

Oh theres an idea, have people further removed from the issues a particular regions is facing screw it up.

I mean, what drought, for the last 15 years Ive had plenty of water, too much at times.

[ebxr82nv]

If every man, women and child payed a flat rate of 20% with no deductions on their income(doesn't matter if you're on the dole or making 10 mil a year) this country would be a much more financial place to live with a lot more to go around

[fmc351]

Originally Posted by ebxr82nv

If every man, women and child payed a flat rate of 20% with no deductions on their income(doesn't matter if you're on the dole or making 10 mil a year) this country would be a much more financial place to live with a lot more to go around

Id say taxing the Dole/Pension etc would be counter-productive. The amount actually paid now would reflect a livable amount, calculated using a set of parameters of what is needed to survive. If they deducted tax the payment amount would end up being increased to reflect that established amount after tax.

[ebxr82nv]

They pay tax on centerlink payments now, not that it's much.

[LowEL2XR8]

How about no income tax at all. Have it like the GST but put higher rates on luxury items ie more luxury tax and on stuff that makes us fat like fast foods (that could be done by having lower tax on lower calorie foods). More tax on beer and cigarettes. Stuff that harms us directly.

No tax at all on go fast bits for you car. LOL

[Crazy Dazz]

Originally Posted by ebxr82nv

If every man, women and child payed a flat rate of 20% with no deductions on their income(doesn't matter if you're on the dole or making 10 mil a year) this country would be a much more financial place to live with a lot more to go around

No deductions?
So if your business turns over $10M, you pay tax on $10M, even if your costs were $9.5M??
Well yep, that would certainly increase tax revenue. Many low margin businesses would have to increase their prices by over 15% just to pay the tax.
Meanwhile fatcat CEOs who currently pay an average of over 40% on their squillion dollar salaries, would have their tax halved??

And yes, we should definitely tax dole bludgers, or better yet just abolish the dole, because living in cardboard box eating catfood is their own choice.

[flappist]

You really want to know how to fix it.

0.1% transaction tax on EVERY bank money movement.

Every time money moves 1% is payed in tax. No tax deductions are needed whatsoever.

But there will be a few problems e.g. hundreds of thousands of unemployed ex ATO employees (could all work for telstra call centres )