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2010-06-24

RSPT faulties reflects those in Henry Review

Comments on Karen Maley “Gillard's RSPT minefield”, 24/06/2010, http://www.businessspectator.com.au/bs.nsf/Article/Gillard-RSPT-Resources-Maley-pd20100624-6Q9JC?OpenDocument&src=sph
It is not just the design of the RSPT that is seriously flawed but also the whole Henry Review that needs to be studied carefully.

For example, while raising the tax free threshold level for personal income tax, the review recommends a land tax of nearly all land use including principal residences for which there are many low income households would be taxed.

The two are fundamentally inconsistent and contradictory.

Yes, it might broaden the base of land tax, but just imagine that some pensioners who don't have much income to pay the land tax for their own homes. What would the government want to do with those who cannot afford that land tax? What kind of distortions that would produce for people’s lives?

Is that a good tax design? Definitely NO.

That is no more than another amateur design of a tax system.

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