The Australian Taxpayers' Alliance, the nation's largest grassroots advocacy group representing taxpayers, today announced their five step economic reaction plan to the COVID-19 slowdown. The plan includes pausing payroll tax in all states, helping contractors, giving businesses a break from the high corporate tax, making goods cheaper by cutting value add taxes, and creating Special Recovery Zones to spur more domestic production into the future.
"In times of crisis, we can either move toward more freedom and fix broken systems or we can move toward a more Authoritarian government where the people with the best lobbyists get the handouts," said ATA Policy Director, Emilie Dye. "Right now the Morrison government is taking the second route."
"Throwing money, even $189 billion, won't fix the current crisis if the government continues to pull that money from the taxpayers to fund its valiant rescue. By cutting payroll tax, as NSW and Victoria have already done, state governments make it possible for employers to pay their workers for an extra three weeks. This covers three weeks of sick leave for these businesses."
"Contractors, unlike employees, don't receive any sick leave. The ATO could instantly put more money into the bank accounts of these workers by simply moving the due date for their taxes. Even better, this wouldn't hurt the long-run budget bottom line."
"This slowdown has revealed great inequity in our current tax code. Salaried employees don't pay taxes on large chunks of their compensation including, sick leave, consistent pay, and greater job security. COVID-19 has revealed just how valuable these benefits are. Contractors, however, must pay tax on every dollar, so it is only fair they pay a lower tax rate.
"Businesses in Australia pay some of the world's highest corporate taxes. This gives local businesses a serious disadvantage against large multinational corporations. We could both stimulate the economy and make our tax code fairer for Australian businesses but cutting the corporate tax rate.
"Australia is currently disincentivizing consumption when businesses need every sale they can get. By lowering both the GST and value-add lifestyle taxes, the Federal government could prompt people to spend money and help the economy, thus putting more money in the pockets of individuals and businesses.
"Lastly, Australia depends heavily on other countries for our goods. This has created a breakdown in the supply chain and fueled a dangerous panic. The government could relinquish some authority to local governments, and reduce taxes and red tape in certain jurisdictions to promote domestic manufacturing in those areas.
"By building Special Recovery Zones, our government would have the opportunity to experiment with free market principles to develop the often forgotten parts of Australia.
"Fear shouldn't make us give up our freedoms and our hard earned money to the government, it should make us demand more liberty to protect ourselves and our families from crisis. Government does not know best when it comes to your life and your security."
