australia needs tax change, page-12

Would never work

based on last yeartax rates a person would earning $75000 would have paid $17100 in tax plus medicare

if that salary was deposited into a bank account based on a debit tax system at 1% it would attract a whole $750 tax

a whole $16350 that has to be made up elsewhere


Assume a business turning over $1mil with a 10% net profit margin before tax, they would pay $30k in tax

based on a debits tax they would only pay $10K

would also open the way for a conta deals to be done where no money exchanges hands

and encourage a cash economy, if you only get taxed when your money goes into a bank account, get paid in cash and put the money under your bed.

The tax system with out arguement needs an overhaul, the libs total stuffed the reforms they implemented and I do not have much hope in the present government doing much better.

But tour idea is to simplistic, the rate is to low which menas there will be a larger burden on lower income eaners based on their ability to pay and you think the current system is rorted, something that is not as wide spread as some believe

a system you descrided would be open for rorting