Monday, April 21, 2008

More tax

First we have calls for new PC sin taxes, such as "junk" food (whats junky about a salad, meat pattie and a bread bun ?) and carbon, now we get a tax review:

PRIME Minister Kevin Rudd has signalled a major shake-up of the Australian tax system.

Just one day after the 2020 Summit to gather ideas for the future of Australia, Mr Rudd put the taxation reform in the spotlight.

"I think it's time we actually looked at a root and branch reform of the Australian taxation system,'' Mr Rudd told ABC Television's 7.30 Report tonight.

Mr Rudd said the current system was too complex and criticised the former Howard government for not making changes.

A comprehensive review of federal and state taxes within two years was one of the ideas to emerge from the summit.

I somehow doubt this will lead to less tax, despite any claims of increased efficiencies. Just a couple of points:

We already have a junk food tax, the GST, fresh food is except. The whole idea is inherently elitist, its a tax on cheap family favorites.

I fear "tax reform" will just remove tax raising power from the states. They will be become even more dependent on Commonwealth funds and continue to blame their incompetence on the federal government.

I don't like the sound of this at all.

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