A bit of cash is the grease in the gears of the economy. Sooner or later it gets taxed, but in the mean time it goes around and greases a few gears. Think of it as a stimulus package. Fred the chippy get's a cash job. he can't bank it, so he buy's the wife some new white goods and tax gets paid. The rest he pays the panel beater to finally get his car painted. So the panel beater has some cash that he gives to the motor trimmer to get the new bimmini on his boat. The motor trimmer takes his wife on a holiday and saves his marriage, he also stimulates the tourist industry and his money get's taxed. So the Government has got it's cut. Unfortunately they like to tax it ten times as it goes around rather than six.
I'm with you there....It all goes around the complete circle eventually. We pay tax every time we buy anything from a shop or grocery store.
When the GST came in, the wholesale tax of the then 10% was supposed to be removed. It didn't happen. We ended up with a double tax on just about everything.
The bit that really gets under my skin is the ATO always go after the little business for every cent they can get out of it while people with gazillions like Rinehart and co whinge and moan about how much they have to pay the work force while they pay as little tax as is possible. They dig a big friggin hole in the ground, pull out the good stuff, sell it overseas and then complain about having to pay tax for the mess they make of the landscape while they make more money in a week than most of us will ever see in a lifetime.
Let cashies continue to keep the wheels greased I say, before we end up with the cashless economy the bastards want.
