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High Income Executives get the biggest Tax cuts under John Howard03 July 2007
New research that models all of the income tax changes since 1996 shows that average workers have been ripped off under the Howard Government while high income executives have benefited the most.
Research released on Monday by the ACTU shows that under the Howard Government workers on average wages got just $23 a week in tax cuts while high income earners got a tax cut that was six times higher -- $140 a week.
The modeling takes into account all of the Government's income tax changes since 1996, the impact of bracket creep and the GST, changes to the Low Income Tax Offset as well as further tax cuts promised for 2008, and excludes changes to social security such as family assistance.
ACTU President Sharan Burrow said:
"Like the IR laws, the Howard Government's tax changes are biased against average working Australians.
While average earners are due to start receiving a small tax cut this week, this modelling shows that this is just a pre-election sweetener that doesn't make up for the tax bias against average workers under eleven years of Coalition Government.
The fact is that low and middle income taxpayers have received only around one third (35%) of the value of the tax changes since 1996 while those on higher incomes received nearly double this share (65%).
The vast bulk of the tax changes under the Howard Government have benefited high income executives while average workers have been dudded," said Ms Burrow.