Swan unreasonable on MRRT and GST link again
Comments on NEWS - Economy "Swan pressures states on GST", 9/01/2012, http://www.businessspectator.com.au/bs.nsf/Article/Swan-pressures-states-on-GST-pd20120109-QBQZS?OpenDocument&src=hp4
The RSPT and MRRT, from their design, is a revenue grab by the Federal ALP government, not as what recommended in the Henry Taxation Review to replace the current mineral Royalties with a more efficient rent type tax on minerals.
As a replacement of state mineral royalties, any new tax on mineral rent should leave that to the states.
Should that be the case, it would address not only efficiency of mineral taxation, but also mitigate the current huge vertical fiscal imbalance between the federal and states levels of government in Australia.
That would be hugely beneficial to not only the current fiscal management but future generations.
Haven't we been told by the federal ALP government that the states will not have enough revenue to provide the predicted level of medical services partially related to population aging in the coming decades, as its excuse to ask the states for part of their GST to be given to the federal government to be counted as its contribution to government funding?
Isn't it a fundamental principle that there should be clear accountability for any government for its expenditures and taxes?
Why the federal Treasurer does not follow basic economic principles in his dealing with the states?