cam . # .

Yes it is simplistic: the tax system is overly complex as the government tries to social engineer through it. I think it is up to 11,000 pages. We have professions trying to make sense of the political mess that is the tax system.

But it is simplistic for a reason, it is to define a moral obligation as well. Those that have prospered in the system of liberty and justice have a responsibility to ensure its upkeep. It allows those that have not yet prospered in it (are not in the top half of all income) to not face the burden, penalty or punishment for not having prospered in this environment yet through heavy handed taxation.

Too often the poor and middle income earners suffer regressive taxation at the hands of a tax and revenue drunk government. By limiting taxation to those that have prospered, it also limits the power and revenues of government. At the moment the government is the most powerful economic entity in Australia. It has revenues that are approximately 35% GDP. Yet with all that power, it faces elections, not the fickleness market. Corporations and products do not get three year tenures from consumers. So there has to be some rationalistion there.

But liberty and justice are paramount. The former is achievable through constitutionally protected political rights, and limits on government (economic too). The latter is protected through a replicable and just judicial system. These are the price of prosperity and freedom of individual, social, cultural, political and economic action. Someone has to pay for them, it is equitable that it be those that have prospered under such a system.

cam