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2011-01-31

GST should be in this year's tax summit

Comments on Annabel Hepworth and Siobhain Ryan “Call to put GST in tax summit”, 31/01/2011, http://www.theaustralian.com.au/national-affairs/call-to-put-gst-in-tax-summit/story-fn59niix-1225997120225

While including GST in the tax summit this year is without doubt a perfect argument, some of the arguments here or in the Henry tax review report are just purely elementary school economics or politics.

For example, why should own home be subject to capital gains tax? Why should property investment treated differently from other investment in terms of deductibility?

Further, it is a horrible idea to have an all inclusive land tax even including own homes. It is fundamentally inconsistent with the approach of allowing low income earners not to pay or exempt from income tax.

There are some areas that the Henry report recommendations got it off the mark, including the mining tax approach that has been shown already by the failures of the Rudd/Swan SRPT.

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