Tax: featherbedding the richest

Australian National University economist Andrew Leigh said the tax cuts announced in the 2005 and 2006 federal budgets had been “extremely regressive”, with half the benefits flowing to the richest 10 per cent.

“Surprisingly, the new tax cuts announced this week are even more skewed towards the top end,” Dr Leigh said. “For example, a federal backbencher will receive a tax cut that is three times as large as a full-time minimum wage worker.”