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2011-05-17

Taxes, welfare and the middle-class

Comments on Gerard Henderson “Middle-class welfare tag insults the noble art of raising children”, 17/05/2011, http://www.smh.com.au/opinion/politics/middleclass-welfare-tag-insults-the-noble-art-of-raising-children-20110516-1eps8.html

There are excellent and pointed points in the article.

The quote of tax relief is worth noting.

Although unconventional, people should also realise that people who are middle class but on a bit higher income also pay more taxes, not just in terms of per person or per dollar, but proportionately more per dollar of income. That is the nature of progressive tax, as compared to a flat tax rate regime.

On per person basis, higher income people pay much more taxes than they could receive back from government services.

That is an important feature of the modern tax system to note.

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