The Australian Labor Party’s annual conference is a critical event for the party that is desperately trying to regain its standing with the electorate.
So it’s little surprise that they are adopting superficial policies that make for excellent sound-bites, but will have zero (even negative) meaningful impact.
The policy, in particular, of what I speak is their newly adopted position to introduce a tax regime that takes aim at high income earners.
“Take aim”… yes. But meaningful… no.
It simply goes to show that the ALP is trying to buy votes from lower-income earners by promising to take more money from the rich.
Not that tax on “the rich” shouldn’t be more equitable. For that matter, tax on the rest of us should be more equitable also… why should we be financially penalised via taxation so the government can waste our productivity on meaningless, ineffective and unnecessary activities (or, rather, lack of activity).
That aside, these so-called “rich” have options. This includes accountants and lawyers who advice them on how to structure their affairs (including the nature of how their income is earned).
These options are exactly why “the rich” pay so little tax in the first place. They work within whatever the rules are. And if the ALP changes the rules, then “the rich” will simply change the way they play the game. Or leave. They can do that too, don’t you know.
Net result: “the rich” will not end up paying significantly more tax; the government will spend more, in anticipation of raising more revenue from “the rich”, and; ultimately, the government will raise taxes on lower income earners to make up for all of the government’s overspending.
Three cheers for politics… always screwing the little people, every time, even when they tell you they’re trying to screw the big shots.