Goldsmith Paul: Taxation (Livestock Valuation Assets Expenditure and Remedial Matters) Bill — In CommitteeText is incorporated into the Bound VolumeGoldsmith Paul: Taxation (Livestock Valuation Assets Expenditure and Remedial Matters) Bill — In Committee[Sitting date: 02 July 2013. Volume:691;Page:11756. Text is incorporated into the Bound Volume.]PAUL GOLDSMITH (National):I was very interested to hear from the previous speaker Clayton Cosgrove about his concerns about equity in the tax system. He was terribly worried that Joe Public in the street is having a hard time and that all the tax cuts are going to the wealthy. So I thought I would just remind him of a couple of statistics. At the moment 6 percent of income tax payers pay 37 percent of the income tax. So the higher-income earners pay a lot. But that does not anywhere near explain the actual extent of massive redistribution that we have in the system. When you take into account Working for Families at the same time—and I am trying to focus here on the first part that we are talking about—take for example Joe Average on the street whom Mr Cosgrove referred to. If you were on the minimum wage and effectively earning $30000 a year and you happened to have three children it would be interesting to know how much tax you would expect that person to pay under this iniquitous arrangement which the Labour Party thinks is a terrible one. Do they pay any tax—someone on the minimum wage with three children? No they actually get given $10000 extra so that their after-tax income is $40000. Rather than paying any tax under this massively redistributive system they are actually paid $10000 extra so that their after-tax income goes from $30000 to $40000.I am responding to the issue that Part 1 it has been suggested is not doing enough to reform the tax system. Actually that person having been given an extra $10000 would pay maybe $2000 or $3000 in GST but for that of course you get free health-care free superannuation free education at the point of delivery and all the sorts of things that the Government provides.I will just use one final example before I step up. What happens if there are two income earners in the family and the household income is $50000? What tax would you expect them to be paying if they had two children—two income earners with $50000 in household income. If they had two children well they would not be paying any income tax at all; they would actually be given $1600 on top of that. So their actual after-tax income is higher than their pre-tax income. Again it is hardly the most inequitable system unless of course you are suggesting that maybe there is too much redistribution and I think that is an issue that we need to resolve.If there are three children in that household with $50000 of income in fact the tax is not zero; they are given an extra $5000. So their after-tax income goes from $50000 to $55000. I just thought I would put those figures down on the table so that the people in the Parliament can realise that when we hear all this nonsense about the Government letting off the wealthier people from paying tax and making Joe Public struggle we—Hon Trevor Mallard: Do you want to speak again this year?PAUL GOLDSMITH: Sorry? I think I have probably said enough on this issue so thank you very much.