Increase the Medicare Levy

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The Government expects every Australian understands the importance of health care, and consider to increase Medicare levy and the new law will set up a Medicare Guarantee Fund in national disability insurance scheme (NDIS). An additional contribution from income tax revenue. From 1 July 2019, the Medicare levy will increase by half a percentage point from 2 to 2.5 per cent of high-income earners taxation income. And the bill will provide transparency about what it really costs to run Medicare Guarantee Fund.

The National Disability Insurance Scheme is the new way of proving support for Australians with disability, their family and carers and they will get the support they need.

Is it fear high-income earners must pay a greater contribution ?

The NDIS is support for each of Australian that means all of the Australians can get the support and welfare in this insurance scheme. The fear and smart way that could be each of the Australians have the responsibility to pay the taxation income. Because of each of the people receive the disposable income are different so the government can establish a policy to decide what percent of the income tax the household have to pay. For example in the lower income level can allow them pay less tax, in contrast if the people receive higher income level they have ability to pay more. However the main idea is everyone have to pay this taxation income not just focus on the higher income earners.

Impact on the household living standards ?

Increase the Medical levy contributed on the income tax which means decrease the household living standards. That will lead to people decrees their spending on purchase the goods and services and living standards. It will immediately decrease the consumer consumptions and AD. It is damage the economic activities and economic economic.

Impact on the Economic growth ?

The government will increase the revenue cause push up the income tax and household have to pay more to the government. Firstly, the government have the enough funds and don’t need to borrow the money for oversea to help to country development, decrease the current account deficit and benefit for the economic growth and decrease the government’s pressure. Secondary, the government can spend the funds to develop other areas such as education, health care and transportation. That could provide the job opportunities for the people who want to find a job, increase the employment rate and increase the household living standards.

Choose one of the questions to answer:
1.    High-income earners must pay a greater contribution? Agree or disagree and your opinion?
2.    Increase the Medicare levy will impact on which area? (Expect the living standard and economic growth )

http://www.abc.net.au/news/2017-05-11/budget-2017-labor-medicare-levy-limited-to-high-income-earners/8519282

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11 Comments

  1. I think it would be fine because high-income earners would still have a larger disposable income than low-income earners even if the income tax percentage is higher for high-income earners.

    Liked by 1 person

    1. the argument often made against taxing those with high disposable income is that they would have invested that money and reinvested that money into the economy. Because they are private investors, they would be more efficient with their money and grow the economy faster than if the government used the funds. The growth would then in turn increase living standards for the rest of the population.

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  2. I guess it’s okay to make high income earners pay more, because it’s better than making lower income earners who may already be struggling financially to pay more

    Liked by 1 person

  3. I think the increase of the medicare levy is likely to impact the living standards of households predominantly. With people having less money in their back pocket could lead them to decreasing their spending and having lowered living standards.

    Liked by 1 person

  4. While the progressive tax system ensures greater wealth distribution and is arguably the only way a full market economy can work, it is worth noting that the top 1% of earners in this country pay for 22% of this country. Yet they do not receive 22 times better healthcare, 22 times faster public transport, or 22 times more firefighters at their burning house. They are what allow our country to function, and while it is easy to say that just because they have the money that they should be made to pay more, we should not go around calling them names while we do it. At the end of the day, we all enjoy the benefits of their sacrifice, and no-one has ever won an argument by demanding someone be more generous than they already are.

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  5. There is a point with the wage gap, but continuely going after top income earners just discourages people to actually improve their salary. The NDIS must be funded, it’s a very vital part of our healthcare system but whenever a bill needs to be paid, increasing tax for top income earners isn’t always the solution as they are the biggest personal spenders in the economy.

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  6. The NDIS is a very important public service that needs to be funded but the increase of income tax to fund it could cause other problems like lower consumption, slower economic growth and decreased living standards. I still think it is a right choice to make as it is important to have that support.

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  7. High income earners are an easier target in the short-term to increase tax revenue (and aid the mildly contractionary stance to bring the budget back to surplus) but aiming a lot of taxes at high income earners in a long term scheme doesn’t seem like it would be a good idea, considering Australia’s current sluggish rates of economic growth and the amount of investment and spending that high income earners contribute to the economy.

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  8. Money has to come from somewhere and I guess taking from high income earners is better than taking from struggling low income household

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