within the govt, there's bickering over what sort of tax-cuts there should be and who should benefit from them. I think Beazley, not being the most astute polly in the world, is falling into the trap of resigning himself to the fact there will be a tax-cut, and arguing for the one pushed by Costello that most directly benefits middle to low income earners, as opposed to Malcolm Turnbull's one, which only directs high income earners. Beazley should imo be fighting against any tax cuts and pushing for the surplus to be put into the areas that need it...
Turnbull tax plan rewards the richPeople earning $1 million a year would pocket income tax savings of more than $100,000 under cuts to the top marginal rate proposed by the Government backbencher Malcolm Turnbull, secret Treasury documents obtained by the Herald show.
A worker on the average full-time wage of $50,000 would get only $600. The politically unpalatable sums cut to the heart of a stand-off between Mr Turnbull and the Treasurer, Peter Costello, who is known to favour cuts for people on lower and middle incomes.
In an executive minute to the Treasurer, the Government's top economic adviser, the Treasury Secretary, Ken Henry, attached a document detailing the full distributional and budgetary impacts of three of Mr Turnbull's 281 proposals for tax reform.
Treasury's tax analysis division found Mr Turnbull's preferred option - to abolish the top 47 per cent rate, reduce the 42 per cent rate to 35 per cent and increase the tax-free threshold from $6000 to $10,000 - would deliver annual savings of $109,450 to those with a taxable income of $1 million. Those on $2 million would save $229,450.
http://www.smh.com.au/articles/2005/11/20/1132421548434.html?from=rss