I have some sympathy for the idea behind Payroll Tax. Back when industry was a lot more labour intensive than capital intensive, and most people were employed full-time, the number of employees was a pretty good guide to how big a business is.
It makes sense that bigger businesses should be taxed at a higher rate than small businesses (it's essentially the same sort of progressive type tax structures that applied used to apply to workers before bracket creep essentially put everyone into the top two brackets).
All the whingeing and carrying on you hear about Payroll Tax is pretty much straight from the same people who whinge about how Australia needs to reduce tax for high income earners: it's self interested special pleading twaddle from the wealthy.
Forget the "payroll tax discourages employment" angle. Companies will put on whatever staff is needed to shift the product. Reduce the tax and the CEOs and shareholders simply pocket the difference.
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Date: 2005-10-30 08:06 pm (UTC)It makes sense that bigger businesses should be taxed at a higher rate than small businesses (it's essentially the same sort of progressive type tax structures that applied used to apply to workers before bracket creep essentially put everyone into the top two brackets).
All the whingeing and carrying on you hear about Payroll Tax is pretty much straight from the same people who whinge about how Australia needs to reduce tax for high income earners: it's self interested special pleading twaddle from the wealthy.
Forget the "payroll tax discourages employment" angle. Companies will put on whatever staff is needed to shift the product. Reduce the tax and the CEOs and shareholders simply pocket the difference.