Treasurer Joe Hockey, in an interview with this newspaper, says the "personal income tax revenue is subject to unsustainable risk" because "the top 10 per cent ... pay nearly half" which he says "is an over-reliance and dependence on a narrow base that is increasingly mobile" ("The Delivery Man", AFR,   August 15). 
Does Mr Hockey really think that we face a serious risk of all those people suddenly disappearing? That would be amazing to see 1 million of our highest income earners disappearing. Where would they go and who would take them? But a realistic scenario? On the figures for 2012-13, the top 10 per cent starts at a taxable income of $119,380, 57 per cent above average weekly earnings. At the 91st percentile they paid just 28 per cent of their income in tax. Are they itching to leave?
Australia has never experienced a mass emigration - not even under the Menzies government when the top marginal tax rate was never under 65 per cent compared with 45 per cent now (plus the Medicare levy and temporary levy making 49 per cent). Quite the opposite; Australia regularly takes migrants from countries where the top marginal income tax rates are much lower than in Australia.
It sounds like Mr Hockey is dreaming up excuses for giving more to the rich while pleading the cupboard is bare when it comes to essential services for everyone else.
David Richardson
The Australia Institute
Canberra, ACT