To put a rocket under the economy, the Government has decided to bring forward proposed tax cuts, making them effective from the 1st July 2020. With the Government wanting to get the benefits of the tax cuts flowing as soon as possible, anyone on the average wage could expect to get an extra $20.00 or so per week in the pay packet in the next few weeks.
For someone like me on a higher than average wage, these tax cuts could give me an extra $100.00 per week, once they are fully implemented in 2024. Middle to high-income earners will benefit enormously from the tax cuts, and they are also then likely to save, rather than spend the windfall.
For our double income family, we don’t need any form of a tax cut. Our family income is more than we need to meet our basic needs, and all we will do with the extra is to pay down some debt. I would have preferred the Government not provide tax cuts, but to spend that money on services for lower-income families or those with a greater need than mine.
In a time when we need to increase our support of all members of the community, these tax cuts only go to entrench inequality instead. Now more than ever, we need a little more equitable distribution of wealth if we are to maintain our egalitarian society, and these tax cuts don’t achieve that.