Update- Taxation
One must agree with many of the views expressed by Dr Laffer but we disagree on a key point and that is that the tax paid by the super wealthy should not be increased.
Put simply the lower socio economic class pays little to no tax while the super wealthy pay the largest amount of tax in dollar terms per individual but as a share of their wealth the super wealthy pay a relatively small percentage.
This is because they use a combination of company, trust and offshore structures as recommended by their professional advisors to legally minimize their tax.
The middle class unfortunately (the majority) pays the highest amount of tax as a percentage of their wealth because they work but do not have enough wealth to justify the cost of expensive tax minimization structures.
Warren Buffett famously emphasized this same point when he compared the percentage of tax that he paid to that paid by his secretary. Yes in dollar terms he paid more but as a percentage his tax was less then his secretary and his argument was that it should be at least the same.
Is the current tax burden in Australia fairly and reasonably spread across every Australian?
No is our view and taxation reform is needed.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me via Contact Us or to call me on +61 2 9267 2322.
18th-March-2015 | 
