Abbott Government Plans at Least $800/Year Deficit Levy for Aussies Earning $80,000 or More Annually

By @ibtimesau on
Tony Abbott in China
Chinese President Xi Jinping (R) extends his hand to greet Australian Prime Minister Tony Abbott before a meeting at the Great Hall of the People in Beijing, April 11, 2014. REUTERS/Parker Song/Pool (CHINA - Tags: POLITICS TPX IMAGES OF THE DAY)

If former Australian Prime Minister Julia Gillard had the carbon and mining taxes as partly the cause of her unpopularity and political downfall, in the case of incumbent PM Tony Abbott, who has been on the job for only 7 months, it would probably be his proposed deficit tax.

In essence, reports say that the planned imposition would cover Aussies earning at least $80,000 annually, who would be required to pay 1 per cent of the amount or $800 a year. The tax rate would remain the same, so someone earning $400,000 would need to pay $4,000 to help the federal government erase the budget deficit which it would surely blame on the previous Labor-led government.

Several Coalition members are reportedly against the planned deficit tax. One member of the ruling party, cited by the Sydney Morning Herald, warned that the tax could haunt Mr Abbott's entire prime ministership.

"I worry that this is Tony's Gillard moment, when she announced the carbon tax," the senior Liberal said.

Politicians are worried about the impact of the proposed deficit tax on their careers since this early, their offices have been swamped by calls from constituents asking what would be the impact of the levy on their families.

The planned tax, it seems, would not only surprise the Australian taxpayer but also the politicians who said they did not receive any communication about it from the office of Mr Abbott.

Although the Coalition leader has not officially confirmed the measure, he hinted about it to the press in Melbourne when he said, "What we need is a tough budget now for a bright future tomorrow."

Opposition leader Bill Shorten vowed to block attempts by the Coalition to pass the measure since it is a bad idea and a broken election promise by Mr Abbott.

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