Tax reforms should be too hard to make

Comments on Arthur Sinodinos “Anyone know the way to the promised land?” 16/12/2010, http://www.theaustralian.com.au/news/opinion/anyone-know-the-way-to-the-promised-land/story-e6frg6zo-1225971755174

While the conventional thinking for a personal tax cut is to raise indirect taxes through the GST, it is interesting but hard to understand why revenue neutral personal tax reforms can't be designed and implemented.

Why isn't it possible to have a personal tax reform in stages to gradually flatten the personal tax rates?

It is true that if some State taxes that are inefficient were to be abolished, there need increases in other taxes, and possibly it is the best option to raise the GST rate or reduce some of the GST exemptions on food.

But for personal tax reform, given that it is not to abolish it, why can't we design a path to translate the opportunities offered by tax bracket creeping into reducing the tax's progressivity?

It is really a myth in terms of tax reforms.

Let's not get unnecessarily too complicated on reforms. If a big bang can’t be achieved, then let’s have a gradual approach!

An important principle for tax reforms to get public support or the support of relevant stakeholders is the observing revenue neutrality for the government and not to use it as an opportunity for revenue grab.