Over the course of the last week Treasurer Scott Morrison has outlined the government’s intention to cut income tax (aka the “silent tax’’) in order to offset a potential rise in the GST.
Treasurer Morrison stated “When they go to the ATM to draw out their cash, they do not see, as they do with the GST on their sales receipt, the 19c or 32.5c or 37c or 45c that has been deducted in income tax — let alone the extra 2c for the Medicare levy.’’
Coincidentally, when I first heard of this intended move by the government, I had been reading an essay pertaining to this topic entitled “Economics – War and Tax” (1st March, 1969) by L. Ron Hubbard.
To summarize, the essay has a very American Western bravado tone to it (that is rich in anti-communist straight talk).
Hubbard frames the concept of income tax in this way:
“Income Tax has been continually used to “get” people against whom no charge could be proven. It cuts the money off before it can be invested or used in the country. It denies expansion to commerce and inhibits trade.
If a revolutionary wanted to set a country up to antagonize its citizens, shatter pride in their government and prepare the ground, he would advise putting in Income Tax and then, year by year, insist it became more onerous.”
While Ron Hubbard has some truly bizarre and out there ideas when it comes to Scientology, frankly I reckon he hit’s the nail on the head with his to the point analysis of income tax, which quite bluntly identifies the “revolutionaries” as the greatest threat to individual citizens.
Food for thought.
