Monday, 8 February 2016

Tax Reform again.

The PM has the wobbles on tax reform we are told.

He sees little of the benefits of increasing the GST to 15%.  Yep John Quiggin nailed it not so long ago.

now let us go back to basics. What is needed?

Go and read the Henry review. no need for any new investigation.

Firstly go and get rid of all those inefficient taxes State governments impose. If those same governments broaden their payroll taxes and had no exemption the incidence is almost the same as the GST. Do the sane to land tax.

Wella. States have more money and economic activity is enhanced.

Next investigate why revenue has not got back to anything like normal levels since the GFC. Is this a structural problem or not?

If it is new taxes will have to be introduced or old taxes increased. There is no way there cuts to health and education can be bloodless. Becoming more 'efficient' does not cut the mustard.

Top of my list is what to do with the extravagant tax concession to high income earners on Superannuation. We should just treat it as income.
We should ask why anyone has tax deductions. This merely assists high income earners as well.
quite obviously either impose a carbon tax or bring back an ETS.

Okay there is a start.