Read on Twitter
THREAD on income tax cuts - the govt will trumpet the green column which gives a rolled up figure, but what's really going on is the yellow column is a one-off boost in 2020-21, and pink is the permanent increase.
#auspol #Budget2021
#auspol #Budget2021
Notice something? Green makes it look like everyone is about $2K better off. Yellow reveals middle income earners are getting a ONE-OFF boost in 2020-21; and PINK shows the RICH are getting the biggest cuts.
#auspol #Budget2021
#auspol #Budget2021
Why does this happen? Because for people earning $48K-90K the threshold changes only compensates for loss of low to middle income tax offset. So the middle are only ahead in 2020-21 because in that year they get BOTH.
But for people earning $120K plus...they hardly got LMITO, and their tax cut from threshold changes is PERMANENT. They're ahead not just in 2020-21, but every year.
The other secret behind the green column is that 2017-18 is the reference year - before stage one of tax cuts. So they're patting themselves on the back, again, for tax cuts passed last year. Well done everyone.
FULL STORY explaining the income tax cuts #auspol #Budget2021 https://www.theguardian.com/australia-news/2020/oct/06/tax-cuts-australia-federal-budget-2020-11-million-australians-stage-2-two
And here's @GrogsGamut with the graphs to show who is ACTUALLY better off #auspol #Budget2020 https://www.theguardian.com/australia-news/2020/oct/06/tax-cuts-australia-federal-budget-2020-income-taxation-stage-2-two
SMH and Oz both have low to middle income earners in the WINNERS column, with no thought to what happens after 2021.
The Oz even more LUDICROUSLY counts high income earners as losers. Wrong.
The Oz even more LUDICROUSLY counts high income earners as losers. Wrong.
The PMO points out if LMITO came off, middle income earners would be worse off by $1,080. And in that sense the tax cuts for them are permanent.
But it's not permanently better off compared to 2018-19, it's permanently better off compared to 2017-18. ie, a middle income earner is not going to experience it as a new tax cut, they're going to experience it as a continuation of a past tax cut.
