AFR FAKE NEWS ALERT: $130K IS NOT ‘MIDDLE INCOME’

FACTS!

MORE THAN three-quarters of Australian workers earn less than the average full-time wage of $90,300, with the typical Australian worker earning just $57,918! 

NOT $130K!

AFR fake news alert: $130k is not “middle-income”

AFR fake news alert: $130k is not “middle-income”

 

By Leith van Onselen

 

The AFR’sJohn Kehoe has penned a highly spurious article claiming Labor’s 49% tax rate will “hit middle-income earners”:

Taxpayers earning between $130,000 and $160,000 today could be hit by Labor’s budget repair levy and 49 per cent top tax rate within four years as income growth pushes them into the top tax bracket.

The number of Australians earning more than $180,000 a year by 2022-23 and to be stung by Labor’s 2 per cent budget levy will jump to 785,000, up from 540,000 people this year, based on estimates by the ANU PolicyMod using the federal budget’s wage forecasts…

Applying the average historic growth in taxable income – not just wages – of 4 per cent, a person earning $160,000 today will receive $187,000 by 2022-23.

First, the Budget’s wage growth forecasts were heroic and will most definitely not be met:

Second, and more importantly, on what planet does someone earning more than $130,000 represent a “middle-income earner”?

*As shown by the Grattan Institute last week, more than three-quarters of Australian workers earn less than the average full-time wage of $90,300, with the typical Australian worker earning just $57,918:

 

The top marginal tax rate of 45 cents in the dollar kicks in on taxable incomes above $180,000 a year. Journalists often use this threshold as shorthand for ‘high income’.

But it may surprise you to know that just 3.1 per cent of Australian taxpayers had taxable incomes that high in 2016-17, the latest year for which figures are available.

Only another 14.9 per cent had taxable incomes exceeding $80,000 a year.

So a taxpayer with an income of $80,000 a year is therefore in the top 20 per cent of Australians…

Never let the truth get in the way of another shameless attack on Labor’s tax policies.

unconventionaleconomist@hotmail.com

 

 

SOURCE:  https://www.macrobusiness.com.au/2019/04/afr-fake-news-alert-130k-is-not-middle-income/

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