Joe Biden thinks that unless there's widespread government intervention in the economy, economic inequality "brews and ferments political discord and basic revolutions."
at 12:40 pm on December 21, 2020 | 16 comments
International research suggests that the next stage of the federal government’s tax reform agenda may increase income inequality and do little to boost productivity.
From mid-2024, the government proposes to introduce a flat income tax rate of 30 per cent for people earning between $45,000 and $200,000.
Researchers Enrico Rubolino and Daniel Waldenstrom examined previous reductions in the top marginal tax rates in Australia, New Zealand and Norway, and concluded that while they had positive benefits for people on the highest incomes, there was very little financial benefit for people on lower incomes.
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Treasurer Josh Frydenberg has said the changes will maintain the progressive nature of the tax system, reward effort and “encourage aspiration”.