Year: 2025
Type: article
Abstract: This article investigated the impact of adjusting Australia's personal income tax rate on national economic stability, income distribution, and public service funding. This study evaluated the impact of modifying the personal income tax system, with a focus on its effects on taxpayer behavior, tax structure, and social stability. By analyzing economic changes and income and expenditure data, determine how adjusting income tax rates affects different economic groups in society. The research results indicate that increasing the tax burden on high-income groups can enhance social equity, but may lead to a decrease in consumer spending and investment in certain industries. On the contrary, reducing the overall personal income tax rate can stimulate economic activity, but may pose fiscal challenges to the funding of basic public services. This study emphasizes the need for a balanced approach that considers economic growth, fiscal responsibility, and fairness in tax distribution. Suggestions were made for future tax policy adjustments, emphasizing the importance of a progressive tax system that adapts to economic fluctuations and population changes.
Author: Pengyu Zhou
Institution: The University of Sydney
Language: English
Topic: Economic and Fiscal Studies
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4410128178