Income tax reform is a cinch. Make it fair; keep it simple; get people to comply.
I’ve got the answer. It’s been right in front of us all the time. It’s not complicated; it’s extremely simple. A four year old could work it out. So, I’m not sure why the average Joe citizen hasn’t said anything; hasn’t spoken up about the best way to go about income tax reform.
Makes me wonder.
I must make a confession. I didn’t come up with the answer. Someone else did. Someone with a lot of authority. Someone who has a vested interest in income tax. And, this someone didn’t just tell me, he told everyone so we all know the answer. And boy is it simple; boy is it easy; boy is it fair. And I guarantee you – everyone will comply; they’ll comply happily, willingly and joyfully. It’s great. I wish I thought of it. So, really I’m just sharing what we’ve already been told. I’m just sharing with you the “silver bullet” answer to solving the on-going discussion about income tax reform.
Anyway, here’s the answer …
The way to make income tax simple, fair and everyone willing to comply is this …
ELIMINATE IT!
Now, before you arrest me for divulging a state secret, permit me to explain.
The government already knows this is the best idea for income tax. How do I know that? Easy, they told us.
Remember Peter Costello? He was the Treasurer under the Howard Government. Remember the sales pitch he gave for introducing the Australian Good and Services Tax (GST) back in 1998-99? Peter told you we should eliminate income tax when he preached,
‘We want to tax you when you spend not when you earn!’
So, there you have it; the government agrees with me. Or should I say, I agree with the government. After all, they gave me the idea; they gave me the answer. I didn’t dream it up, they did. The government has decreed – the government has declared – the government has proclaimed … the simplest, fairest and – easiest to comply with – income tax is to not have one at all!
The government has spoken. Who am I to argue with them?
So, my question to you is, “Why do we still have an income tax in Australia?”
I don’t know the answer to that question. I’m hoping someone out there knows and can share the answer with us.
I guess a follow-on question would be, “Why do we still have stamp duty tax?” After all, the government told us all these other taxes were going away once the GST came in effect back in 2000.
And, while we’re at it, let’s ask, “Why is there still a excise tax on petrol?” By the way, this tax is 38 cents per litre and then GST is added on top – a tax on a tax if you will.
Yes, your government knows the best income tax is no income tax but they won’t do it. Hmmm, I wonder why?
I guarantee if you eliminate the income tax everyone will comply. You’ll have no outliers; no renegades breaking your new income tax law; no need for a compliance division; you’ll get 100% cooperation.
I also guarantee it would be the simplest tax known to humans.
I also guarantee it would be the fairest tax ever invented.
See, I told you income tax reform is a cinch.
P.S. If you’re wondering, “If there’s no income tax, how will the government pay for things?”
I’ll answer your question with two questions as follows:
1.) Is income tax your only tax?
2.) When will the government ever have enough tax money?