Tax refomrs should take the right approach

Comments on Michael Stutchbury “Complacent country under fire”, 18/09/2010, http://www.theaustralian.com.au/news/opinion/complacent-country-under-fire/story-e6frg6zo-1225925578140
The idea to use carbon tax to fund the other tax reforms is poor and is unlikely to gain public support.

It is important for a carbon tax to be revenue neutral and should act purely as a price signal to change consumer and business behaviour in energy use to lower emissions.

To reform personal income tax to flatter tax with $25,000 tax free threshold should be considered with other welfare reforms. Alternatively it should be staged or phased in with a clear future path.

Other reforms to state taxes should be considered with revenue reallocation between the federal and state levels of government, and possibly service responsibilities.