SEPARATING WELFARE and TAX

Governments of all persuasions have difficulty separating Welfare Systems from Tax Systems.

If you go back a couple of centuries, those in need, had to rely on the charity of other individuals or organisations such as Freemasons and the Church. A parishioner was expected to give one tenth of their income to the church, a practise called “tithing”. The church provide not only pastoral care, but helped the sick and the needy.

Progressively various levels of government have taken over the responsibility for the care and well-being of families and individuals. What was once “charity” has evolves into “welfare” and “entitlements”. The problem becomes how is this and other government expenditure paid for.

There are always those who never want to pay anything, and will look for ways of avoiding payment.

There are as well, unfortunately, those who do not want to work or contribute, and expect the social services systems to support them.

The burning questions are always, how much should be provided, and, “who pays”.

Consider:

1. Determine acceptable levels of health and education. Make them universally accessible and not means tested. If you want more pay for it yourself, or in the case of health insurance, pay the premium.

2. Flatten income tax with no tax free threshold. It doesn't matter then who in a family/relationship earns the money or works the hours. If you pay tax from dollar one of income, there is no incentive not to work more and go above the thresh-hold. For those that idealogically want the higher income earners to pay more, they will, as they will be taxed on more dollars.

3. Use low income supplements to allow people to have the basics in life.