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2011-10-03

Which is worse - the tax forum or the 2020 Summit?

Comments on Peter Anderson “Six immediate reforms to make tax forum more than a talkfest”, 3/09/2011, http://www.theaustralian.com.au/national-affairs/six-immediate-reforms-to-make-tax-forum-more-than-a-talkfest/story-fnab4up0-1226156384664

No matter how much cynicism, it is well justified.
When the 2020 summit was held, the Rudd government was very strong and popular. But how many of the ideas from that summit have been actioned?

Back to now, the Gillard government was a minority government and deeply unpopular. Besides, there is the Henry taxation review report with the government for nearly two years. So, what can one really and seriously expect from this taxation forum?

Now back to your argument about lower tax rate to raise more tax revenue. It is not too dissimilar to the already tried and failed Reagan experiment in the US based on the Laffer curve idea. Hoping it will work in the Australian context is more likely to be akin to wishful thinking.

One of your proposals is to blame the states for the green energy measures they have introduced, without mentioning federal failures in this area,such as the pink batts program. That also means your argument that the GST is not raised by the states and hence they don't have incentives to contain their expenditures is empty.

Your suggestion of increasing the efficiency dividend from the APS is more like an insult to many APS employees who work very hard but their pay increase cannot even match the inflation. It is so easy for you gays to say to increase the efficiency dividend! Why don't you say to increase tax on business profit to provide revenue for services?

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