Progressive in theory, regressive in practice: that's how we tax income from savings
- Written by Robert Breunig, Professor of Economics and Director, Tax and Transfer Policy Institute, Crawford School of Public Policy, Australian National University
ShutterstockWe’re told Australia has a progressive tax system – the more you earn, the higher the rate.
And that’s certainly the case for earnings from wages. An Australian on A$35,000 sacrifices 21 cents out of each extra dollar they earn whereas an Australian on $90,000 sacrifices 39 cents.
That’s how it’s meant to be...
Read more: Progressive in theory, regressive in practice: that's how we tax income from savings