Income distribution (1 Viewer)

[CaR]

hey..
can somebody please explain to me how this year's budget has affected the distribution of income and the allocation of resources?

thanks..

 

[jennelli28]

lol, could someone answer this question....coz i need to know aswell hehe

 

[CaR]

MichaelL

the current budget 04-05 affects the redistribution of income with the increase in goverment expenditure towards families with children. By having those baby bonuses and the Family Benefit schemes it redistributes income to those households who have greater expenditure and mariginial propensity to consume. So with the family benefits it allows allows a slight increase in marginal propensity to save to increase.

 

[mushroom_head]

Also the tax cuts in the 04/05 budget for high income earners would increase the gap between the poor and the wealthy

 

[Acid]

Yep, you have to be earning over $52,000 per year to see a tax cut so I think this budget caters more to the bourgouisse (which is fairly predictable seeing that it's a liberal government).

 

[CaR]

Originally posted by Acid
Yep, you have to be earning over $52,000 per year to see a tax cut so I think this budget caters more to the bourgouisse (which is fairly predictable seeing that it's a liberal government).

u mean bourgeoise?

can somebody correct me if im wrong...
lower income earners will be funding the tax cuts of those with a higher income due to inflation, resulting in bracket creep?

 

[iwantnotes&stuf]

i wouldnt think that the tax cuts are funded by lower income earners

the tax cuts are less significant in comparison to the family benefits and baby bonus anyhow. govt. is just trying to cover [young] families and middle aged avg-higher income voters

bracket creep is being countered by the raising of the brackets over the next 2 years, i can't remmeber the amounts though