Peter Costello’s Tax Raising Legacy

We’ll resist the temptation to write some poetry on the end of Peter Costello’s political career. Instead we’ll just stick to the numbers.

Federal Government taxation in 1996 = $123 billion

Federal Government taxation in 2007 = $235 billion

This year it’s over $300 billion.

While it is true the marginal tax rates were changed from the top rate of 47% on any earnings above $50,000 in 1996 to a top rate of 45% on earnings above $150,000 in 2007, the overall tax burden based on tax revenues is double what it was when Costello became Treasurer.

Even if you take inflation into account, the tax burden has still risen by more than $60 billion.

Then add on state taxes and local government taxes.

For all the talk of running surpluses, the last year has proven that governments cannot be trusted with your money. They were able to build a surplus because they taxed too much.

Instead of returning the money to you, they spent it.

What they didn’t spend, they kept. And now they’re spending it.

Plus they’re spending money you haven’t given them yet. Money which will need to be taken from you in the form of higher taxes, or initially at least, by encouraging you to give up your superannuation fund.

Meanwhile Mr. Costello continue to rob the taxpayer of millions of more dollars over the next 30-odd years as he enjoys his retirement courtesy of the taxpayer.

Kris Sayce
for The Money Morning Australia