is tax up every year under the Abbott government?

Tax on the rise

The bar chart below, Chart 1, reports the annual tax to GDP ratio from 2008-09 (the first Labor budget) to 2018-19 (last available projection). It must be noted upfront that data for 2014-15 and the two subsequent years are estimates, while data for 2017-18 and 2018-19 are projections.

If one takes 2014-15 as the reference for the first budget year of the Coalition government, then the evidence indicates that tax revenues in proportion of GDP are higher under the Abbott government than under the two previous Labor governments.

Furthermore, the tax-to-GDP ratio is expected to increase steadily over the next four years.

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A few qualifications are necessary. First, being estimates, the data for 2014-15 and subsequent might be revised in the future (but I don’t expect these revisions to be significant, at least for 2014-15).

Second, the tax-to-GDP ratio of 21.9% observed in 2014-15 is not the highest ever. Supplementary Table 2 in the budget papers shows that in 2007-08 the ratio was 23.6%. The peak was reached under the Howard government in 2000-01, 2004-05 and 2005-06, when the ratio reached 24.2%. Over the period 1970-71/2014-15 the average ratio was 21.5%.

Third, the data above refer to cash receipts. Accrual receipts in 2014-15 amount to 23.9% of GDP, as shown Supplmentary Table 4 in the budget papers here shows. This is only slightly higher than the accrual receipts to GDP ratio in 2013-14 and 2012-13 (23.7% and 23.6% respectively), but still one to two percentage points higher than the ratio in the earlier years of the Labor governments.

https://theconversation.com/factcheck-is-tax-up-every-year-under-the-abbott-government-41966

This is the bit probably most relevant.

" Lastly, it is worth stressing that this verdict does not establish what level of the tax-to-GDP ratio is most appropriate or desirable for the Australian economy.

In fact, lower taxes do not necessarily lead to superior socioeconomic outcomes, essentially because a government that raises little revenue is also a government that can supply little in the way of public goods, services and social welfare.

For this reason, rather than just focusing on how to reduce the tax burden, the policy debate around taxes should be concerned with finding the tax level and structures that best meet the needs of Australian citizens. "

Well not much chance of the present govt providing services as like the Howard govt it is intent on reducing services. Also like the Howard govt it is higher taxing than its its rhetoric leads us to believe. Still it will be remarkable if the govt matches Howards tax grab.

Yes tax receipts will grow as the population grows . The question is are our taxes being spent wisely..I say no . Too many leaners not enough lifters..

Pete,

I find the Leaner and Lifter analogy rather limited.

I see a sponger on the system and a totally profit motivated businessman as both Leaners.

Neither is giving much to the society they live in.

There is a balance though this appears to be beyond the simple mind set of our politicians.

A society such as ours can never be defined simply as Lifters and Leaners.

Take it easy.

SD

With over 50 per cent of voter now receiving some form of govt payment the burden on the remaing few is unsustainable. This situation has been created by Governments appealing to their own supporters with hand outs . 

In the case of the Howard govt it was family tax credits , which paid stay at home mums in particular farmers wives a hand out...and took out of the nett taxpayers family on average wage with children..

in the case of Gillard govt one instance is paying those already on a PPL in addition the minimum wage . EG a pay rise for the lucky ones 6O per cent of which are public servants ..

Corporate welfare of any kind is also in the leaner class ...As is solar panels supplied by the poor to the middle class at a cost of 7bililion to the taxpayers .

Pete,

Not too many Lifters about the shop.

A nation of Leaners it would seem. Led by our Pollies.

SD

The Federal Government says the budget will help poorer people by moving them from welfare into work, and yet the same budget has revised upwards its unemployment projections, writes Greg Jericho.

http://www.abc.net.au/news/2015-05-27/jericho-unfair-budget-isnt-saved-by-hopeful-thinking/6498480

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