What is the truth about tax cuts?

Question

What is the truth about tax cuts?

Answer 1

which one?

tax cuts generally mean that the income tax rates for the following year has been reduced.  eg. in the 07/08 year the 15% tax rate bracket was up to to $30000, but for 08/09 its now $34,000.  This means a tax cut for people earning over $30,001.  eg. if your earning $35,000, $4,000 of is now taxed at only 15% which means 4,000 * 15% = $600 annually and $11.53 per week in tax savings.

Answer 2

Is that a loaded question?

If not, tax cuts are exactly what they seem to be - cuts in taxation so you pay less tax. The government has recognised and is trying to compensate for 'bracket creep' where inflation has caused wages to rise and has forced taxpayers into higher tax brackets than they should be in, given the relativity of their earnings to average wages. In recent years, low income earners have been paying middle earner income tax, and some middle income earners have been paying high income taxes.