The discussion paper by David Richardson of the Australian Institute (TAI) models the impact of an increased Medicare Levy in comparison to a progressive Medicare Levy, more like income tax, on the spread of Australian income earners.

It argues the government proposal of increasing the Medicare Levy to 2.5% would mean a gradual switch in the tax mix from the progressive income tax to a ‘flat tax’ that raises the same proportion from higher and lower income earners.

The discussion paper can be found here.


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