Inequality

Question 1

Describe how a Progressive Tax System works?

Answer 1

The more you earn, the more you pay. In Australia, no tax is paid for earnings under around 18k, so low income earners get to spend a higher proportion of their income.

Question 2

What are Transfer Payments?

Answer 2

Transfer payments are payments made by the government out of taxpayer money in the form of

1. Welfare Payments (unemployed, disabled, elderly)
2. Childcare rebates (for working families who have children)

Question 3

What are Non-Cash Benefits?

Answer 3

Non-Cash Benefits are discounts on essential services which are offered to welfare recipients.
They can be in the form of:
1. Healthcare Cards
2. Rebates on utility bills etc.

Question 4

What are Tax Exemptions and where do they apply?

Answer 4

Taxes such as GST do not apply to essentials such as bread and milk, but do apply to non-essentials such as restaurant meals.
Low income families may be eligible for tax exemptions or reductions.

Question 5

What are Material Living Standards?

Answer 5

Material living standards are focused on material possessions, i.e. things that you can physically reach out and touch. Your material standard of living would included possessions such as the car(s) that you can afford, the house that you can afford, the clothes, the furniture, the electrical goods, etc.

Question 6

What are Non-Material Living Standards?

Answer 6

Factors that cannot be physically touched, such as environment, job security and satisfaction, location, suburb.

Question 7

What are some factors to measure happiness?

Answer 7

Shelter, Clean Water, Food, Children, Smiles per day, healthcare, job satisfaction, education levels, political stability, physical and mental health.

Question 8

What are some arguments for Population Growth?

Answer 8

• Reduces inflation due to economies of scale
• helps to pay for ageing population
• increases material living standards
• more skilled workers
• spreads tax burden
• increased tolerance

Question 9

What are some arguments against Population Growth?

Answer 9

• pressure on resources
• rising house prices
• reduces non-material living standards
• lack of infrastructure to cope
• can’t keep growing forever
• racial violence
• Agriculture and lack of food security.