Budget time

The Australian has a budget simulator. It’s a bit simplistic… but it lets people put in roughly their preference for taxes and spending. This is my budget — which includes $5 billion on defense and nothing else, funded through “other taxes”.

I’m going to pretend that those other taxes are voluntary contributions from the State governments, which are in turn voluntarily funded from local governments, which get their money through member fees and donations, where local council membership is not compulsory. That way I’m still an anarchist.

Please feel free to share your budget in the comments below…

18 thoughts on “Budget time

  1. I don’t know who is more disgusting- Mr. Red or Mr. Blue… They are both bloody communists and couldn’t give a consistent viewpoint if their life depended on it.

  2. Hang on a sec – the graph said you spent virtually nothing, and the text commentary said you raised tax revenue, and yet there is a balanced budget – neither surplus or revenue. How did you manage that?

    A libertarian who raises taxes – Where is the money John? Are you actually a libertarian or an African dictator ? 😉

  3. It’s definitely a real eye-opener to see how much goes on welfare.

    I was also surprised how much money the government gets from taxes on petrol, alcohol, and tobacco.

  4. John, what do think should be the priority at the moment?

    I started implementing a flat income tax, then it occurred to me that the focus should really be on cutting corporate taxes to encourage jobs.

    Of course, with large cuts to non-essential functions, you can achieve both, but what should the balance be?

  5. Notice the reader average?

    Somehow the average Australian reader thinks that they can have a $2billion surplus while increasing spending in every area except welfare. And somehow with all that money spent they’ll still have enough for their families after tax time.

    I’m wondering what taxes they raised and to what levels. Or if there’s just a government magic pudding around somewhere.

  6. Actually just realised $2bil isn’t a huge surplus. I was thinking $2trillion… But still…

  7. Mikel,

    High on my list of prefered reforms is a switch from taxing company profits to taxing company dividends whilst retaining franking credits. That way in hard times, or when the particular business is growthing strong, they have more internally generated cash funds to finance their operations. It would make them less beholden to bankers and it would be a boom for high growth small businesses which have a harder time getting debt based funding. In the current banking environment it would be an instant boost for the business sector.

  8. The “average reader” seems to be very close to budget forecasts…to me this is suspect, I would expect a lot more spending.

    Wayne – Shem made a mistake and quickly corrected himself. Rudd and Swan (and Nathan Rees) are making an encyclopedia of costly mistakes they are defending to their political deaths.

    That is actually why libertarianism will succeed.

  9. Yes, I posted about this in the discuss thread a while back… was hoping to get libertarian types to bring down the average spend 🙂

    It’s interesting that most users were keen to cut back on expenses called “welfare” – but were still happy to support welfare in the form of health/education/housing/etc…

    Mine said “tax cuts for some” even after I’d abolished income tax… was rather annoyed that results didn’t focus on tax cuts. I was thinking we’d have to get a flash programmer to whip up a few games for us to put on the site (either ALS or LDP)

  10. It kept reloading the page before I could finish :/ I flattened income taxes to a 30% rate, gave nothing to anything except transport, military, education and law enforcement and also lowered corporate tax to 15%, while completely scrapping other taxes. I still had about $1bil left over

  11. Playing with the numbers is the easy part. Avoiding a backbench revolt or a massive wipeout at the next election is the tricky bit. Still it’s fun to play.

  12. Looking at that game it’s obvious that a society could easily function after abolishing involuntary taxes such as income tax.

  13. Given that income/company tax is a smaller portion of tax revenues, it shouldn’t be too hard to get rid of these…

  14. I love the comments from Mr Red and Mr Blue:
    ‘Stop what are you doing!!111one’ if you decrease any spending

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