Be cautious when a group of politicians gathers to talk about taxes.
The results of three days spent planning the future of taxes in Australia invariably lead to the same conclusion: Predictions of increases in tax allowances and modifications to existing tax rates.
The immediate consequence is the establishment of a forum to explore potential tax reforms, which will inevitably come at a cost to us, the taxpayers. We end up covering their salaries.
Taxation empowers those in authority to reach into our pockets and seize our hard-earned money. This has always been the case.
In the past, tax referred to the act of touching… and we have been touched repeatedly.
Years ago, families would keep a box, dividing the wage earner’s income into compartments for food, bills, vacations, and more. During tough times, they had to readjust their budgets. Imagine telling your husband that since we are short this week, you’re going to tax him for extra money.
When the budget is tight, politicians do not trim their spending; instead, they impose even higher taxes on us. It seems absurd, yet this is what they resort to whenever they need additional funds.
Why is there no effort to balance the budget? Why not cut allowances, monitor those who overspend, and minimize waste?
Prime Minister Julia Gillard might suggest to Mr. Rudd that he refrain from international trips, or at least avoid taking a large entourage along. The costs associated with luxury hotels, travel expenses, and chauffeur-driven cars add up.
What is the justification for defense expenditures in Afghanistan? Other Asian nations manage to remain uninvolved.
The government vows to allocate our taxes to future needs such as schools, universities, hospitals, more prisons, police, and additional nurses and teachers.
They collect the tax, but where are the additional funds that were promised? Where does the money actually go, and why isn’t it tracked more diligently?
Taxation itself isn’t inherently wrong… we simply need to tax more efficiently. More importantly, there should be stricter controls over how the money is utilized.
There is no proof that the Carbon Tax leads to reductions in carbon emissions. Before any tax is introduced, it’s crucial to understand its effectiveness, its financial impact, damage control measures, and where the revenue will be allocated. Moreover, who will be held accountable if it fails to reach its objectives, and who bears the burden for any mismanaged funds?
Taxation brings penalties, which should apply to both taxpayers and those managing tax revenues.
Is a three-day forum merely another payday for politicians?
Implementing a tax generates revenue for government spending but does not ensure any changes in carbon emissions. We must always scrutinize how tax revenue will be utilized before a tax is executed. Cuts to petrol taxes and GST should be prioritized in every budget, as these affect lower-income individuals and pensioners the most.
We need more care, more control, more accountability… but NOT new carbon taxes.
by Danny Mason
