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Thursday, May 28, 2015

Hockey an advocate of Pseudonomics

First we hear from Joe Hockey that government taxation receipts belong to the tax payer - "It's their money". Well no, it is the Commonwealth's money Joe. Once the parliament, acting on behalf of the citizenry, legislates the taxes to be collected, that proportion of a taxpayer's income becomes the rightful property of the Commonwealth.

Australia, along with most other civilized countries, has a progressive system of taxation. Should the government need to adjust tax rates to improve the equitable effects of tax laws, it is not an argument in the negative to say it shouldn't be done because taxpayers tax obligations are "their money". If that were the case then there would no taxation, no Commonwealth, no welfare, and a state of anarchy. 

Then Joe doubles up on the pseudonomics and says that to tax the income from certain superannuation accounts would amount to retrospective taxation. Well no, Joe. retrospective taxation is when you tax income from previous years. Changing tax rates for income in years to come is not retrospective taxation. 

Why is this pseudo economist our federal treasure?