Nobody else taxes income like Australia does. That has to change if we are to make ourselves more productive.
The undergraduate discussion of the stage three cuts that has carried on for over a year is finally beginning to receive some long-overdue rigour.
generate about half as much from income taxes and twice as much from value-added taxes, as a share of taxation, as we do.We are hugely reliant on income taxes. Income taxes are less efficient than the GST – meaning that we end up taxing more to get less. Worse still, income taxes are a handbrake on productivity because they make it less attractive for people, and companies, to invest in human capital.
This government has rightly acknowledged that greater availability and affordability of childcare is important for women’s labour force participation, human capital development, and economic security. The tax mix plays a very important role as well. I pine for the economic reform eras of the past as much as anyone. But hoping for more Keatings and Howards isn’t working out too well. So, one way to make reform more likely is to make it necessary. Taking away the bracket creep crutch might make treasurers think a bit harder. Because they would have to.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Jim Chalmers pushes pitch to middle AustraliaTreasurer Jim Chalmers is pushing his budget credentials to middle Australia as a major nationwide sales pitch kicks into gear. Mr Chalmers was out alongside Energy Minister Chris Bowen on Monday when he made his pitch to middle Australia. “Broad support for middle Australia was absolutely central to the budget,” Mr Chalmers said. “There are a range of initiatives really right across the board which are designed deliberately to support people in middle Australia.”
Read more »
Remco Evenepoel reclaims pink jersey after stage nine victory at Giro d’ItaliaThe Belgian rider edged out Geraint Thomas, who is his closest challenger in general classification, by a single second in the stage nine time trial
Read more »
Inflation politics hits middle AustraliaIf budget week taught us anything, it’s that the political fight is going to be increasingly about winning over “middle Australia” on cost of living and it could get nasty.
Read more »
Football Australia expects rainbow symbol clearance at Women’s World CupJames Johnson is ‘pretty confident’ Fifa will let players wear armbands about LGBTQ+ and First Nation rights at the Women’s World Cup in Australia and New Zealand
Read more »