Surely if we could end the crazy business of bracket creep, we’d pay less tax? Well, yes – but no.
When we’re reminded that income tax cuts represent merely the partial return of the proceeds of earlier bracket creep, and that the process of clawing back the latest tax cut starts the same day it arrives, it’s easy to join the impassioned cry for tax reform. Sorry, it ain’t that simple.Without the benefit of bracket creep, governments would be forced to keep making explicit increases in the rates of income tax, or to announce new taxes.
Wouldn’t that be an improvement? In principle, yes. In practice, our aversion to paying higher taxes would just make politics an even bigger shoot-fight than it already is. The pollies would spend more time abusing each other and less time getting on with fixing our problems.One thing we can be sure of is that it wouldn’t do much to slow the growth in government spending. Why not? Because our demand for more and better government services is insatiable.
It’s easy to agree on the need for tax reform, but its advocates want to reform differing things and have differing motives. “Reform” is a lovely, positive word, but you need to beware of people whose idea of reform is: I pay less, you pay more.
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.
‘Surely we are smarter than mowing down 1,000-year-old trees to make T-shirts’You would be forgiven for thinking that your wood pulp top is sustainable. But you might be surprised to hear just how many forests are being felled to make it
Read more »
Should parking inspectors feel bad about doing their job?Even these derided professions deserve some respect, surely.
Read more »
Should parking inspectors feel bad about doing their job?Even these derided professions deserve some respect, surely.
Read more »
Should parking inspectors feel bad about doing their job?Even these derided professions deserve some respect, surely.
Read more »
Yes, we need tax reform, but it offers no easy answersSurely if we could end the crazy business of bracket creep, we’d pay less tax? Well, yes – but no.
Read more »
Yes, we need tax reform, but it offers no easy answersSurely if we could end the crazy business of bracket creep, we’d pay less tax? Well, yes – but no.
Read more »