Friday, May 1, 2009

End stamp duties

I was very pleased to read today that the Victorian government is proposing something I have been promoting for some time. Replace State stamp duties by a giving the states a percentage of Commonwealth income tax- a defacto state tax.
THE states would scrap all stamp duties in exchange for a $20 billion a year share of income tax revenue under a radical revamp of fiscal relations put to the Rudd Government's tax review.

The Victorian Government has proposed that the states scrap stamp duty on property, cars and other items in what it acknowledges would be the most significant tax reform since the GST.

It claims the abolition of stamp duties would stimulate investment and generate billions of dollars of additional company tax revenue for the Commonwealth to help pay for the change, The Australian reports.

Lets have some competitive federalism. Competition keeps prices down, competion can keep taxes down too.

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