Wednesday, 30 September 2015

Tax Reform

Let us be very clear about what tax reform is.

It is reforming the tax mix.
Say increasing the GST but getting rid of many state taxes for example. It is revenue neutral.

If you cut income taxes but not spending as Peter Costello and then Wayne Swan did you simply introduce and then expand a structural deficit.

This is why no fiscally literate person ever advocates tax cuts to boost economic activity when there is a slump.