Coronavirus sparks warning of huge tax increases in wake of pandemic

Huge tax increases and the introduction of new taxes could be on the cards as global governments reel from the coronavirus pandemic.

American motivational speaker Mark Victor Hansen has warned that Aussies could soon face new taxes as leaders around the world scramble to pay for the COVID-19 crisis.

The pandemic has caused budget blowouts across the globe as governments sought to control the spread and support those who lost jobs or income as a result.

Mr Hansen, the best-selling co-author of Chicken Soup for the Soul, told news.com.au he believed there would be changes in retirement system, huge tax increases as well as new taxes in the years ahead.

But he said the news wasn’t all bad, and that the crisis would also open up fresh opportunities for many entrepreneurs.

“There has been so much stimulus money (distributed) and someone has got to pay for it, so they will try to give the bill to the middle class,” Mr Hansen said.

“But I say that’s not the way to do it.”

Instead, he said governments should seize the opportunity to pour money into new infrastructure projects which would not only keep citizens in jobs, but also open up new opportunities and industries.

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Treasurer Josh Frydenberg confirmed the country's first recession since 1990-1991 recently. Picture: David Gray/Getty Images

“We should be rebuilding roads and making sure everyone has good healthcare – for the first time, we can comprehensively design a system that works,” he said.

“The government-imposed shutdown has to open up – it can’t stay closed because it will crush the economy and human spirit.

“Now we’ve got the opportunity and we’ve got the resources to do it.”

Mr Hansen said after previous economic depressions in America, an intriguing trend was noted with major revolutionary technology being developed in their wake as people emerged from tough times more determined than ever to succeed and “change the world”.

He said he expected similar breakthroughs to follow the current recession as frustration, and that Australia was well placed to take advantage of the coming boom.

“You guys are wonderful, leading edge thinkers – what I love about Aussies is that they like to take action and they have self-determination,” he said.

“People are going to come out of this and make businesses boom – it’s going to happen.”

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Australia has experienced the deepest economic contraction since the Great Depression. Picture: NCA NewsWire/Damian Shaw

Mr Hansen said there had “never been so much money in the world economy” and that there was more than enough to funnel into infrastructure projects to “get everyone back working”.

“Breakdowns facilitate breakthroughs – once we turn this around we will come back stronger than ever,” he said.

He also urged governments to avoid the temptation of imposing new taxes and instead roll out a flat rate of taxation across the entire population, and predicted that the average person would now end up working far beyond the traditional retirement age thanks to medical breakthroughs.

Mr Hansen will be hosting a free livestream seminar, Smart Money Breakthrough, to help participants turn adversity into opportunity.

It will be held on Wednesday, September 16 at 7pm AEST.