Quote Originally Posted by blackcap View Post
Exactly. If there is a flat rate of tax at say 20% and you earn $10,000 you pay $2,000 tax. If you earn $100,000 you pay $20,000 tax. If you earn $1,000,000 you pay $200,000 tax. Those with more contribute more. Seems like common sense to me but I am not that bright.
Well on the face of it, it sounds like common sense but how about we test your intelligence with a simple maths quiz FP can try too if he likes it might help his understanding of the progressive tax system that gets up his nose so bad? Multi choice.
As we are discussing tax policy I expect a basic understanding of tax but to be fair as David Seymour points out “the current system of four different income tax rates, starting at 10.5 per cent for income up to $14,000 and reaching 33 per cent for income over $70,000, created enormous complexity.” That is right ENORMOUS complexity so if you don’t want to complete the quiz I fully understand, only the very brightest and most intelligent of people should undertake things of enormous complexity.

Information required to complete the quiz our current four rates of tax.
Up to $14,000 tax rate 10.5%
$14,000 to $48,000 tax rate 17.5%
$48,000 to $70,0000 tax rate 30%
$70,000 and over 33%
I assume Blackcap and FP are up for the challenge I also invite anyone else to participate.

Question;

1/ David Hisco earns $3,000,000 per annum this puts him on the top income tax rate of 33% how much does he pay in tax each year? (Hint I left a big clue earlier in the thread but do the maths don’t be lazy.)
A/ $990,000
B/ $1,000,000
C/ $980,920

2/ How much more tax does David pay on his first $14,000 earnings than a person earning only $14,000pa
A/ $3,150
B/ $0

3/ How much more tax does David pay on his first $48,000 earnings than a person earning only $48,000pa
A/ $7,440
B/ $0

4/ How much more tax does David pay on his first $70,000 earnings than a person earning only $70,000
A/ $2,100.00
B/ $0

5/ This last question doesn’t have a right or wrong answer so sorry to stray from straight forward right or wrong answers but feel free to answer whatever seems the most common sense answer to you. I would set up a poll if I knew how.
After ACTs fairer flat tax of 17.5% is imposed David Hisco’s weekly wage after tax will rise by $8,767.69(a week) to $47,596.15 a week after tax.
A person on the minimum wage of $36,816 will see their weekly wage after tax drop $18.85 to $584.10.
Do you think the ACT flat tax sounds more reasonable and fair than the current progressive tax system we have?
A/Yes
B/No

As guidance on this last question here is a quote from David Seymour.
"There is no fairness in 5 per cent of taxpayers paying a third of all income tax. It is wrong that if a person's income doubles from $50,000 to $100,000 their tax bill triples."
With wisdom like this I cannot for the life of me understand how ACT can’t crack 5% of the vote. I suspect a lot of very wealthy people are wealthy because they are intelligent not greedy as popular opinion would have you believe.
Remember the opposite of "aspirational" is unambitious, lazy, apathetic, passive, unassertive.

Answers at 10am no exam papers accepted after this time.