On the same page. But what I think we are saying in furious agreement is that the system is rooted. The twits in Treasury can't see how Single Touch payroll technology fundamentally changes the ballgame - for all these abour taxes (payroll, GST etc). They are so hopeless that they used STP to deliver business expenditure style tax credits with Jobkeeper and the Cash Flow Boost and they can't see how you can use the same approach for a better system overall, including moving to a BET. But your point that you wouldn't do this without a fair dinkum crack at spending and Comm/State spending is spot on. Or you just end up with the Euro problem - tax rises to meet spending until there is another step change. The real issue is we have had a step change in welfare of 3% of GDP called disability. You have to get that under control.
Thanks Spart. And for the kind words. I take your point about the untidy relationship between big government, big business and big political parties. And regulatory burden. There is a lot to that. But issue about tax preferred is the different headline rates and the myriad of tax concessions afforded the sector which evidence shows does little to boost productivity and prosperity (how many times can you replace your kit?). And let's not forget payroll tax exemptions which has effect on the allocation and returns of labour across sectors with large deadweight costs. I just don't think that preferment - whether business size of by industry is a growth strategy. Besides I prefer to get post tax returns for labour up and then let agency and the market doing the allocation.
Completely agree. But payroll tax is just another form of income tax.
I want income tax returned to the states because we can all see what happened when excise was (correctly by the high court) returned to the commonwealth. Standardised and incrementally increased. As would happen with payroll tax.
Before tax reform comes spending reform comes federation reform.
Both Hawke/Keating and Howard/Costello tidied spending before embarking on tax reform.
Federation reform is now required because after tax reform, Howard put the final nails in the constitution.
80+ taxes are collected by the commonwealth which allows the wasteful and indulgent spending of the Feds. Coupled with the close of the Loans Council, it has created a moral hazard for states to go spend crazy. It give it 5 years before the Feds are called to bail out VIC and QLD.
The organ grinder is the treasury secretary of course. Always telling the treasurer (whether Dim Jim or Black Beef Taylor) how to sell a new tax that he has dreamed up.
On the same page. But what I think we are saying in furious agreement is that the system is rooted. The twits in Treasury can't see how Single Touch payroll technology fundamentally changes the ballgame - for all these abour taxes (payroll, GST etc). They are so hopeless that they used STP to deliver business expenditure style tax credits with Jobkeeper and the Cash Flow Boost and they can't see how you can use the same approach for a better system overall, including moving to a BET. But your point that you wouldn't do this without a fair dinkum crack at spending and Comm/State spending is spot on. Or you just end up with the Euro problem - tax rises to meet spending until there is another step change. The real issue is we have had a step change in welfare of 3% of GDP called disability. You have to get that under control.
Only gonna get worse. New NDIS minister Rishworth said 20% of the population is disabled.
I had a piece on the NDIS and disability.
Thanks Spart. And for the kind words. I take your point about the untidy relationship between big government, big business and big political parties. And regulatory burden. There is a lot to that. But issue about tax preferred is the different headline rates and the myriad of tax concessions afforded the sector which evidence shows does little to boost productivity and prosperity (how many times can you replace your kit?). And let's not forget payroll tax exemptions which has effect on the allocation and returns of labour across sectors with large deadweight costs. I just don't think that preferment - whether business size of by industry is a growth strategy. Besides I prefer to get post tax returns for labour up and then let agency and the market doing the allocation.
Completely agree. But payroll tax is just another form of income tax.
I want income tax returned to the states because we can all see what happened when excise was (correctly by the high court) returned to the commonwealth. Standardised and incrementally increased. As would happen with payroll tax.
Before tax reform comes spending reform comes federation reform.
Both Hawke/Keating and Howard/Costello tidied spending before embarking on tax reform.
Federation reform is now required because after tax reform, Howard put the final nails in the constitution.
80+ taxes are collected by the commonwealth which allows the wasteful and indulgent spending of the Feds. Coupled with the close of the Loans Council, it has created a moral hazard for states to go spend crazy. It give it 5 years before the Feds are called to bail out VIC and QLD.
The organ grinder is the treasury secretary of course. Always telling the treasurer (whether Dim Jim or Black Beef Taylor) how to sell a new tax that he has dreamed up.