Debit tax is the modern version of an ancient Greek and Roman taxations system. Modern technology such as computers and ATMs make its adoption and collection, inexpensive and practical.

 

Debit tax is collected continuously - not quarterly or annually - and without paperwork of any kind. It works by debiting one percent at banks or financial institutions when money is withdrawn either by cash, cheque or electronically. The one per cent is then electronically transferred to the Federal Treasury. This eliminates the need for a huge taxation bureaucracy.

 

One per cent tax would provide Australia with a tax revenue of $470 billion annually. The current system provides $215 billion. Foreign national companies would be forced to pay their share of Australia’s tax burden. So-called Australian companies operating offshore would no longer avoid their responsibilities either.

 

How will it affect you?
An annual salary of $30,000 currently attracts approximately $15,000 tax (including GST and other impositions such as rates). Under the debit tax system, the taxpayer would contribute just $300 annually, returning up to an extra $280 weekly into workers’ pockets. This will not be inflationary as ever other current tax is eliminated.

Average wage earners and pensioners would have more to spend on goods costing less because all other taxes will have been abolished.
With more tax collected from those currently avoiding it, there would be more money available for schools, hospitals, roads, railways and the environment.

 

How will it affect the wealthy?
Debit tax is unavoidable. Australia’s current taxation system is based on the illusion that it will take more from wealthy companies and individuals rather than the average citizen. That is fiction of course. Currently the people who control 90 per cent of the business activity pay only 10 per cent of the tax. The main tax burden is carried by wage earners and lower paid.

 

How will it affect employment?
Debit tax provides a strong base for social expenditure and encourages people to expand their businesses. They will no longer be the GST collectors, saving endless hours of paperwork and frustration that has forced thousands of businesses to close.