Australia Institute research shows the Stage 3 income tax cuts are fiscally irresponsible, massively expensive and completely unfair.
The Stage 3 tax cuts will cost the budget around a quarter of a trillion dollars and will benefit billionaires the most, while battlers get slugged.
By cutting taxes for the high-income earners, this extreme tax plan will make Australia's tax system permanently less fair.
The tax cuts were a bad economic idea when Morrison legislated them in 2018, and they're an even worse idea now.
It's time the Federal Government scrapped the Stage 3 tax cuts.
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Australia Institute research shows the Stage 3 tax cuts:
- Will cost more than $240 billion over 10 years, of which $117.6 billion will go to those earning more than $180,000 a year
- Give $9,075 to the highest income earners while giving $0 to those on the minimum wage.
- Will give occupations like CEOs of large corporations, surgeons, and federal politicians a $9,075 a year tax cut. While aged care workers, hairdressers, and café workers will get nothing.
- Men will get twice as much of the tax cut as women.
- In its first year, the Stage 3 tax cuts will cost ($17.7 billion), or more than the federal governments spends on the Pharmaceutical Benefits Scheme ($16.4 b), childcare subsidies ($11.8b), or public universities ($10.7b) or air force capabilities ($9.4b) each year.
- Will permanently make our tax system less progressive by removing an entire income tax bracket, taking us closer to an American flat-tax society.
- Were legislated in very different economic circumstances, before the pandemic and rising inflation.
To the Parliament of Australia --
The Stage 3 tax cuts will cost the Budget more than $240 billion over the next 10 years and will permanently damage our revenue base.
By cutting taxes for high-income earners, this reckless tax cut will permanently undermine Australia’s progressive tax system.
Australia Institute research shows that the majority of Australians think that adapting economic policy to suit changing circumstances is more important than keeping an election promise.
The Stage 3 income tax cuts are unfair and fiscally irresponsible. They need to be scrapped.