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  1. Hardly enjoyable, but interesting reading.

    “No Australian government in this period has enacted an increase in income tax rates.”

    The progressive tax system in an enactment to increase taxes as you correctly allude to here:
    “The reason quite simply is that no government has had to. As nominal incomes rise, the operations of a progressive tax system ensures that the proportion of income collected in income tax rises steadily. This phenomenon, well-known as bracket creep, is actually two effects in one. Real bracket creep arises when real economic growth raises average incomes. From a public finance point of view, real bracket creep is a good thing, because, as income rises, so does the demand for the kinds of goods and services usually financed by governments, such as health, education and law and order. Real bracket creep ensures that this demand can be met. During the fifties and sixties, when economic growth rates were high and inflation was generally low, real bracket creep was the order of the day.

    Nominal bracket creep arises when money incomes are pushed up by inflation, and is definitely a bad thing. With no real change in their circumstances, workers face increasing rates of tax. Since about 1970, nominal bracket creep has been dominant.

    Both kinds of bracket creep are very convenient for governments since they allow tax revenue to rise invisibly. Depending on their proclivities, governments can either spend the revenue in electorally appealing ways, or make a show of magnanimity by handing the money back in appropriately targeted tax cuts.”

    Just because GDP gets bigger does not give government the right to take a bigger proportion of it, that’s the criminality of the deceitful progressive tax system.

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