Need for tax reform

A new report by Deloitte Access Economic, cited in today’s Advertiser (“A better mix for tax system”,
p.51), echoes the case for tax reform that Christopher Findlay and I made in our recent article in The
Australian (available at: Cut costly stamp duties, company taxes with an efficient land levy). In
that article, we proposed reforms that would reduce the total “excess burden” of taxation by about $19
billion per annum – more than $800 per man, woman and child! These gains are available simply by
focusing government revenue-raising on the taxes that are most efficient – that is, those that distort
our consumption, savings, investment, work, leisure and other decisions least. Both the federal and
South Australian governments are currently conducting taxation reviews. It is vitally important that
once these reviews are completed, both governments take action to reap the substantial gains
available through tax reform.

This entry was posted in Business economics, Economic growth, Economic reform, Paul Kerin, Public policy, South Australian economy, Taxation. Bookmark the permalink.

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