The readiest tool in the box and the most equitably appealing solution here to share the burden of the virus is simply legislating for more temporary steps in the personal income tax system and a more progressive marginal income tax rate. We could have, for example, an income tax rate of 40 cents in the dollar from 70K (up seven cents in the dollar), 50 cents in the dollars from 100K (up 17 cents in the dollar) and 60 cents from 150K (up 27 cents in the dollar).
Cutting spending or raising taxes in a recession both have the effect of making the recession worse, and last longer. So Chapple’s proposals would see the recession deepen.
His proposal is one of the stupidest I have seen in recent times, especially as he targets personal incomes not household incomes.
Let’s take a household (two children) where both parents were working – one earns $90,000 and one earns $60,000. The one on $60,000 loses their job. They can’t claim the dole. That family has lost $48,000 in income.
Dr Chapple thinks that isn’t enough and wants to increase the tax on the remaining parent by $1,400 a year!
He also thinks we can have a 60% tax rate and it won’t lead to an exodus of staff and huge tax avoidance. Why do so many people think returning to Muldoon era tax rates is a great idea?
My proposed taxation rise would, as emphasised, be temporary.
Muldoon claimed that also.
High income earners, let the prospect of lower after-tax income concentrate your minds! You have lost nothing but your regular winter holiday in Bali.
Fuck isn’t that the most sneering out of touch thing you have read?
He thinks anyone who earns over $70,000 has it so great that the only effect the pandemic has had on them is their Bali holiday.
There will be small business owners who have suddenly lost the $500,000 of reserves their business has built up. But hey if in a year’s time they’re still making $80,000 a year, never mind the $500,000 loss of their life savings.
There will be the two income families who have to sell their house as they have lost their second income and can’t afford the mortgage. But hey you’re unaffected right – just your Bali holiday, as one of you still earns $75,000 a year.