Who Are the Rich, Really?

The phrase “tax the rich” is often thrown around as a way to make people feel like justice is being served. It sounds good on social media, and it gets people fired up. But when you look at the facts, it’s not as simple as it seems.

Let’s start with a simple question—who are the rich?

According to Credit Suisse, to be in the top 10% of the wealthiest people on earth, all you need is a net worth of $152,216. In Australia, many people in their 40s already have that amount sitting in their superannuation.

And what about the top 1% globally? Well, that requires a net worth of $1,372,509—about the price of a home in Bankstown, Sydney.

But what exactly is net worth? It’s simple—your assets minus your debt. So, if you own a property worth $1.3 million, but you’re still paying off the mortgage, your net worth might not be as high as it seems.

“Tax the Rich” Really Means Taxing You

When people say, “tax the rich,” what they don’t realise is that they’re actually calling for more taxes on themselves.

Governments don’t just tax billionaires and big corporations. They tax everyday people too. In fact, most of the tax revenue comes from workers, homeowners, and investors—not just the ultra-wealthy.

If you understood how tax really works, you wouldn’t want anyone to be taxed more. Here’s why.

How Tax Affects You

Most people don’t realise just how many ways they’re already being taxed. Here’s a breakdown:

1. Tax on What You Earn

Every time you get paid from your job, the government takes a percentage. This is income tax—money deducted before you even see it.

2. Tax on What You Buy

When you spend money, you get taxed again. Every time you shop at Coles, Woolworths, or even buy something online, you’re paying GST (Goods and Services Tax).

So, you’ve already paid income tax when you earned the money, and now you’re paying another tax when you spend it.

3. Tax on What You Own

Think buying property will save you from taxes? Think again.

  • If you own investment properties, you pay land tax.
  • If you own a car, you pay registration and other fees.

Even after you’ve worked hard to own assets, the government still takes a cut.

4. Tax on Your Investments

If you invest in stocks, property, or other assets and make a profit, guess what? Capital Gains Tax (CGT) means you owe the government a portion of your success.

5. Tax When You Die

It doesn’t even stop when you pass away.

Let’s say you’ve worked hard, built wealth, and left investment properties for your kids. If they decide to sell those properties, they’ll have to pay tax on the gains—even though the asset was already taxed multiple times before.

When you break it down, the government is dipping into your pocket at every stage of life. And yet, they still push the idea that more taxes are needed.

The Real Issue: Poor Money Management

Governments already collect billions in taxes. The issue isn’t how much money they take—it’s how they spend it.

Rather than demanding higher taxes, people should be asking, “Why isn’t the government managing the money they already have more effectively?”

Final Thoughts

The idea of “tax the rich” might sound good, but it’s nothing more than a strategy to take more money from everyday people. The truth is, the government already takes enough—and they take it multiple times.

So next time you hear someone say “tax the rich,” ask them: “Do you really want to pay more tax?” Because chances are, that’s exactly what will happen.