Tax Sux - 20% Max
The other socialists
(including the Blue ones) Ask:
HOW MUCH TAX CAN WE SQUEEZE OUT OF FAMILIES!
Libertarians ask
HOW MUCH GOVERNMENT CAN YOUR FAMILY AFFORD?
If you send a dollar to Canberra, you will get 80 cents back; it is challenging to get wealthy doing this over and over.
Welfare churn only makes the government rich.
This current government broke the record time to achieving the Highest Taxing Government in Australia’s history.
The amount of being over-governed is at an all-time high.
Time to ask how much Aussie families can afford?
The cost of government is the Cost of Living Crisis!
Since 1974, the growing size of our Government has placed an increasing burden on Australian families. The proportion of GDP taken in taxation has risen from 15% in the 1950s and 60s to over 30% today.
That’s an enormous amount to spend just on administration.
Think the convicts had it tough? Take a look at the graph below.
Libertarian Tax Policy
• Flat Income Tax: 20%
• Earn up to $100K tax-free
The Libertarian tax-free threshold will be $50,000, indexed for inflation every six months.
Couples will be able to split their income, giving a combined family tax-free threshold of $100,000.
Beyond this, you can earn as much as you like, and the Government will only take 20%.
Even better, once Government waste is eliminated, Libertarians plan to reduce this further to the biblically correct tax rate of 10%.
Who Gets the Cash?
Low Earners ($40,000): Tax drops from $4,000 to $0—$4,000 extra (+10%). Small fry individually, but across 4 million low earners, that’s $16 billion circulating.
Medium Earners ($80,000): Tax falls from $18,000 to $6,000—$12,000 extra (+19%). For 6 million in this range, that’s $72 billion unleashed.
High Earners ($200,000): Tax plummets from $63,000 to $30,000—$33,000 extra (+24%). Say 1 million top earners, that’s $33 billion, though the top 10% (incomes >$120,000) likely scoop closer to $100 billion total.
Total redirected: ~$230 billion, matching the revenue loss.
The assumption is these folks—especially medium and high earners—are the backbone of productivity: tradies, small business owners, professionals, execs. They’re not just hoarding; they’re spending, investing, hiring.
Economic Boost
Consumption: Australians spend 70-80% of disposable income. If $230 billion hits pockets, $160-185 billion could flow into retail, housing, services—shops bustle, builders boom. Low earners might buy essentials, medium earners upgrade lifestyles, high earners splash on luxury or property.
Investment: High earners, with bigger windfalls, might pump $50-70 billion into businesses, stocks, or startups. A tradie buys a second truck, a techie funds a venture—capital compounds.
Jobs: Small businesses (employing 44% of workers) thrive with owners keeping more. A café owner hires an extra barista; a builder takes on apprentices. Unemployment (now 4%) could drop to 2-3%, tightening labor markets, lifting wages.
Multiplier Effect
Every dollar spent ripples—economists estimate a multiplier of 0.5-1.0 for tax cuts in Australia (lower end if spending’s offshore or saved). If $230 billion generates $115-230 billion in extra activity, GDP ($2.7 trillion) grows 4-8%. That’s a rocket boost—enough to offset the 10-15% GDP hit from spending cuts if momentum holds. Tax revenue at 20% on new income could claw back $20-40 billion, narrowing the gap.
Winners: The Contributors
Medium/High Earners: They’re the engine—$80,000-$200,000 earners gain $12,000-$33,000 each. They’re more likely to own businesses (SMEs contribute 33% of GDP) or lead industries. Their spending and investment amplify impact—think construction, tech, retail. A high earner might build a holiday home, employing dozens.
Low Earners: Less per head ($4,000), but freed from tax, they’re in the game—spending on rent, food, kids. Less “contribution” in raw output, but their participation rises.
Libertarian policy removes the poverty traps in our current welfare system.
When people trapped in our welfare “safety net” have a go and try to have a go and try to escape.
They often find the current socialist system makes them worse off.
It is counterintuitive, but lowering taxes will bring in more revenue for the government.
If you taxed everybody 100% of their efforts, nobody would work and the government would get $0.00.
So the most revenue for the government is achieved at less than 30% tax.
Best rate of prosperity growth is at 20%.
Then there is all the government waste to recover
The federal Department of Education does not run schools; states do.
What does the High-Speed Rail Authority do?
Their head gets paid over $15,000 every week.