Another request for help
I’ve been working through the Budget and trying to look at developments since the present government came to office. As shown in previous posts, the income tax scale has become significantly less progressive over this period, so, for single taxpayers we can safely conclude that the poor are paying more and the rich are paying less.
The picture is much more complex for families. It’s clear that the value of Family Tax Benefits has increased significantly in real terms, and the rate of clawback has been lowered from 50 cents in the dollar to 20 cents in most cases. This reduces effective marginal rates of taxation in the relevant ranges, and is definitely a good thing.
But it’s obviously a huge job to work out the aggregate impact, and there are so many variations of family size and income structure that it’s easy to pick and choose (consciously or otherwise) a misleading example. Can anyone point me to some good work on this topic?