Millionaires should pay tax share

Date: 21 October 2008

Millionaires and the well-off must pay their fair share of tax, say unions.

"Working Australians doing the right thing with their tax get annoyed when they see millionaires paying less than they should," said ACTU Secretary Jeff Lawrence.

"High income earners benefitted the most from tax cuts delivered by the former Liberal Government, and it is time to make sure they pay their fair share towards essential services and community needs."

Mr Lawrence said the tax system must be equitable and progressive and fairly redistribute wealth and income. It must also be sufficient to fund the universal provision of high quality services.

He said Senator Xenophon's proposal for a new tax rate for millionaires deserves consideration.

Earlier this year, the ACTU called for an end to the company tax deductibility for salaries over $1 million.
Mr Lawrence said the Henry Review of the tax and transfer system must not just become a forum to lower the taxes paid by corporations and wealthy individuals.

"The ultimate test of tax system reforms is not whether they benefit the economy but whether they promote a better society," he said.

"A more equal distribution of wealth is at the heart of a robust tax and transfer system."

The ACTU is calling for more restraint in multi-million executive salaries that have rewarded excessive risk-taking and profit gouging at the expense of workers.

"Australians support a tax system that leads to improved spending on essential services, including health and education," Mr Lawrence said.

For further information

Contact:	Mark Phillips
Union:	ACTU
Phone:	(03) 8676 7266
Contact Mobile:	0422 009 011
WWW:	http://www.actu.asn.au/

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