OECD report finds Australian Govt tax rates comparitively high

AM - OECD report finds Australian Govt tax rates comparitively high:

"The Organisation for Economic Cooperation and Development says some Australian families pay the second highest effective marginal tax rates of any country in the OECD. And it says high taxes for families on average wages and single parents are creating big disincentives to work. Labor says the OECD report backs its claims that the Howard Government is high taxing."

We find the tax rates high too. There are some bizarre anomalies. For some people it is better to stay on welfare than earn a low income and pay taxes. For some it's a case of working hard for a living to support themselves and their families and then see others do better because they either have more children or they have family payments, benefits or whatever. The way income is generated here has become convoluted and then the taxes associated with it have become high because governments have tried to even things out. Case studies need to be done on the WAYS people earn income and then the TAXES they pay according to their income generation. The picture will then become clearer. Some households can generate a lot of income and other households are precluded from that. Those with lots of income don't want to lose it, obviously , but those trying to develop a career path and increase income are then finding it hard to get a foot in. In 10 years the picture ought to be considerably different and someone needs to look at that scenario pretty closely too.