26-04-2023, 11:07 PM
8.9% of a lot is still waaaaay more than 20% of not much.
A theoretical scenario:
Bob earns $70K/year, pays $550/week rent and spends the rest on stuff that attracts GST. He pays $17.5K combined GST & Income tax per year or 25%.
John makes $5M taxable profit from the company he owns, from which he invests about $500K and spends the rest (after income tax) on stuff that attracts GST. He pays a combined total tax of just over $2M. His business and properties increased in value by 17.5M so his overall tax rate was only 8.9%.
Do you really think it unfair that Bob had to pay a whole $17.5K whereas John got away with "only" paying $2M?
A theoretical scenario:
Bob earns $70K/year, pays $550/week rent and spends the rest on stuff that attracts GST. He pays $17.5K combined GST & Income tax per year or 25%.
John makes $5M taxable profit from the company he owns, from which he invests about $500K and spends the rest (after income tax) on stuff that attracts GST. He pays a combined total tax of just over $2M. His business and properties increased in value by 17.5M so his overall tax rate was only 8.9%.
Do you really think it unfair that Bob had to pay a whole $17.5K whereas John got away with "only" paying $2M?