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2010-03-03

It is not just personal tax, but also GST as a missing key

Comments on “Henry review 'hollow' with no income tax rejig: CIS”, by AAP, 3/03/2010, http://www.businessspectator.com.au/bs.nsf/Article/Review-hollow-with-no-income-tax-rejig-36JPH?OpenDocument&src=hp7

While it is clearly correct that any serious tax reforms should inevitably include personal income tax, the exclusion of GST from the Henry review has already sowed the seed for big disappointments.

With a constraint not to touch the GST and reduce the room for trade-off of different revenue sources, it is not possible to consider best options for personal income tax reforms.

So that is an indication that Rudd/Henry are too ideological and not serious about real tax reforms.

They were too weak to make serious decisions on taxation reforms, because they don’t have a strong base within the ALP.

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