Our GDP is approximately $1.6 trillion per annum. Therefore, if in any year we spend $1.6 trillion dollars more than our taxation revenues, our spending ratio, erroneously called debt to GDP ratio would be 100%. Currently Japan’s debt to GDP ratio is 237%. Germany is 80%. The USA is 106%. The UK is 90%. Australia’s debt to GDP a ratio is currently 27%. Even if this was a debt we had to repay, which it isn’t, by world standards it is very low. Spending is not our problem. Debt is not our problem. Taxation, or more correctly, our methods of collecting taxation, the imbalances, the lack of fairness, are the problem. When those who earn hundreds of thousands, indeed millions of dollars begin paying a rate of tax that reflects a measure of their contribution to our productivity, our GDP, only then will our tax system be fair, and be seen as fair.
Posted on: Tue, 09 Dec 2014 05:11:42 +0000
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