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First comment on Henry tax review recommendations

Comments on Alan Kohler “HENRY TAX REVIEW: It's politics, not reform”, 4/05/2010, http://www.businessspectator.com.au/bs.nsf/Article/HENRY-TAX-REVIEW-Its-politics-not-reform-pd20100502-537EG?OpenDocument&src=sph

While it is lamentable that the Rudd government just pick up less than 2% or the 138 recommendations by its commissioned Henry review team, it is not the case that no recommendations of the review can be questionable and they all should be implemented in full.

The proposal of an 1% land tax on all land is such an example. It the taxation authority is prepared to not tax income for up to $25,000, that is, presumably for the benefit of low income earners, why should those low income earners be taxed on their own owned dwellings?

At least there should be a similar tax free threshold for land values, shouldn’t it? Otherwise, there is a fundamental inconsistency in the core consideration of the tax design or reform proposals.

I have not read the Henry review report, but it is clear that even the ideas from the best tax minds of the land can be improved.

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