Thursday, May 24, 2018

The Nanny Tax and the Miracle of Government Loaves

In 1985, a pilot program called Mozart-in-the-Parking-Lot discovered something surprising: You can fight crime with orchestral music Fighting  Black Economies and  crime 

Govt's high-risk IT project watchlist falls to 14 - Strategy - iTnews

DTA drops four, adds two.

The status of two ATO projects previously captured by the watchlist – the SuperStream superannuation overhaul and single touch payroll program – were downgraded to ‘monitor’ in March and April this year.

The number of federal government IT projects considered high-risk by the Digital Transformation Agency has fallen to 14 after four projects were downgraded and one was cancelled.
The DTA has been keeping tabs on high-risk projects since it was tasked with identifying all government IT projects valued at more than $10 million in early 2017.
It looked to categorise projects as part of its digital investment review by confidence of delivery, with the most high-risk ones assigned an ‘engage’ classification.
Such a classification could see the DTA conduct health checks, ask for remediation or mitigation plans, or request reviews.
Less risky projects were labelled as either ‘monitor’ or ‘observe’.
The DTA revealed that 17 – or just under a quarter of all federal government IT projects captured by the watchlist – fell under the ‘engage’ category last November.

Time to stop multinationals eroding our tax base - Seek founder

China: Communist Party threatens to cut billions from Australian imports -

The Nanny Tax and the Miracle of Government Loaves

Before it descends into utter madness, Leslie Forde’s Slate article on Nanny pay opens with a good story:
“I’m sorry … but I can’t,” she told me over the phone. My heart sank. I was confident she’d take the job. Quickly, I went into negotiation mode, “But wait, can we talk about the pay? Do you need more to … ” She said no before I could finish. “I just can’t take a job (that pays) over the table. It’ll mess up my housing. I won’t be able to stay in my apartment. I’m sorry. I’ve already taken another job.” I ended the call. …my entire career was at risk because I couldn’t find a nanny—at least, one willing to be paid legally.
It’s estimated that less than 10 percent of 2 million domestic workers and the families who employ them pay employment taxes.
From that opening I was expecting the author to explain that nannies aren’t willing to work on the books because at the bottom of the income scale income is taxed twice–first by Federal and State direct taxes and second indirectly because higher income causes workers to lose benefits. As a result of this double taxation, in some states it’s possible for poor workers to face effective marginal tax rates above 100 percent. If you had to pay to work, would you work?
High marginal taxes rates on the poor are a problem. We ought to be able to agree on that, even if we disagree on proposals to address the problem such as a universal basic income or a negative income tax. But in Forde’s magical world, up is down and down is up and the problem is that taxes on the poor are too low. But not to worry because this presents a hidden opportunity!
There is, however, a hidden opportunity to provide help to our caregivers and the families who employ them. Right now, these under-the-table arrangements are creating a “tax gap”—billions of dollars in additional funding that would be available to support caregivers, if the majority of families and their caregivers paid into the system.
Did you get that? If nannies were taxed the government would have more money to provide nannies with benefits. Wait, it gets worse. According to Forde, we can make both families and nannies better off by giving them back the money the government takes and still have money left over!
The estimated “gap” from the lost tax revenue is a combination of the federal and state employment taxes typically paid by employees (Social Security, Medicare, and income taxes) and employers (in addition to Social Security and Medicare, they must pay federal and state unemployment taxes.) Imagine if just a portion of this revenue were used to reimburse families for more of their child care expenses and to provide caregivers access to better benefits than they get currently with their under-the-table jobs. (italics added, AT)
Indeed, wouldn’t it be nice to live in a world of pure imagination? One without tradeoffs. Where we could rely on the miracle of government loaves to solve all problems?

Beware of bitcoin fake tax debts scam


Bank directors bear responsibility for the poor treatment of small business lenders and the ATO is following in their footsteps, writes Robert Gottliebsen.

Normally when a succession of executives confess before a royal commission that customers were treated badly, boards and chief executives can duck for cover and blame the executives. But when it comes to small business, the core of the blame lies with bank boards and not the executives.

 The ATO is repeating the hideous mistakes of bank boards


US embassy responds to Andrew Hastie disclosure – politics live

In addition, throughout the amnesty period the ATO will still continue its usual ... on $41,000 to $200,000 pay the same rate of tax from 2024-25) will cost $40bn.

Royal commission hears ANZ gave loan for gelato franchise using ...


ABC's Emma Alberici 'disregarded' advice of ATO expert


Staffing a question of purpose, not pure numbers for APS