In an earlier post about usurious marginal tax rates driving high income Australians to migrate, I posed the following rhetorical question:
"Can anyone in the Australian Government spell 'brain drain'?"
Well it seems they can. The recently announced 2005-06 budget (the Australian financial year begins on 1 July) included an increase in the threshold for the top 48.5% tax rate from AUD70,000 to AUD125,000. Still not great by international standards, but a big improvement. So credit where the credit is due.
Of course this produced predictable bleating from the bleeding heart left about how it was "tax cuts for the rich". And if all the high income, highly skilled and highly productive Australians continue to move offshore, who do they think is going to fund their beloved welfare state?
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