Australian Tax Reform

Better Essays
Debt, Death & Taxes
16th October 2002 Robert Camilleri

The Conservative government doctrine is essentially defined as the party of tax relief. But now conservatives have converted themselves into the party of debt retirement. The conservative government has lost interest in tax cutting and instead wants to devote the surplus tax payments and asset sales over the next 3 years to paying down the national debt. The Howard-Costello government, seen as militant debt hawks, has announced their goal is to retire the entire national debt by 2005.

Has this government forgotten all of the economic and political lessons of the past 20 years? Take the American experience of the Reagan Government, they used surpluses to cut marginal tax rates, which is the most economically productive use of tax surpluses. Moreover, financing Social Security privatization, and tax reform, as much of the rest of the world is now doing, would enhance the long-term growth potential of the Australian economy substantially more than retiring Government Bonds.

This country is on the brink of economic utopia, and the real worry is that this government is squandering a once-in-a-lifetime opportunity to position Australia to have a positively funded balance sheet with continual reduction in taxation. Our leaders need to address the inequality of our federal tax system, the individualist and non nationalist State tax systems and ever increasing burden local governments are facing to fund their own budgets. This is not to mention the inadequately funded retirement programs and bracket creep, that nearly all Australians recognise as economically dysfunctional.

The Federal Government has nearly $15 billion sitting with the Reserve Bank in cash, add to this the sale of Telstra, which would net around $30 billion and based on current government projections the government will have more than $60 billion in cash by 2005. Just looking at the cash surpluses not including asset sales, if the

You May Also Find These Documents Helpful

  • Better Essays

    Tax Reform

    • 1577 Words
    • 7 Pages

    Understanding Federal Income Tax Taxes have been part of our economy for a long time and are enforced by the government or other agencies, on income and expenses. Taxation in the United States began when it was composed of colonies. During this time taxes were imposed on commodities through legislative such as the Stamp Act, the Sugar Act, Townshend Revenue Act, and Tea Act. Later, in 1913, the states ratified the sixteenth amendment, which gave congress power to tax incomes. Taxes were imposed…

    • 1577 Words
    • 7 Pages
    Better Essays
  • Better Essays

    Tax Reform

    • 1658 Words
    • 7 Pages

    12/05/2012 Tax Reform There is effect when you talk about taxing a country as a whole and founding out that it actually helps or sometimes the functionality of the country to reform taxes as they weather away as time goes on. It was the unfair and demanding taxes the British put on the colonies in the 1700, as the American colonies were finding their identity and still under British rule, in which it lead to a Revolution. Nowadays, there is simply let’s talk it out and reform old taxes and…

    • 1658 Words
    • 7 Pages
    Better Essays
  • Good Essays

    Tax Reforms

    • 1507 Words
    • 7 Pages

    IMPACT OF TAX REFORMS SINCE 1991 Tax reform since 1991 was initiated as a part of the structural reform process, following the economic crisis of 1991. Direct Tax Reforms: 1. As per the recommendations of the TRC the personal tax brackets were only three, of 20, 30, and 40% starting in 1992–93. Financial assets were excluded from the wealth tax, and the maximum marginal rate was reduced to 1%. 2. Further reductions came in 1997–98, when the three rates were brought down further to 10, 20,…

    • 1507 Words
    • 7 Pages
    Good Essays
  • Good Essays

    Tax Reforms in India

    • 5493 Words
    • 22 Pages

    TAX REFORMS IN INDIA * About :- Tax reform is the process of changing the way taxes are collected or managed by the government. Tax reformers have different goals. Some seek to reduce the level of taxation of all people by the government. Some seek to make the tax system more progressive or less progressive. Others seek to simplify the tax system and make the system more understandable, or more accountable . Numerous organizations have…

    • 5493 Words
    • 22 Pages
    Good Essays
  • Good Essays

    Tax Reform Effects

    • 298 Words
    • 2 Pages

    Coupe The Effects of Tax Reform on Charitable Contributions By: Gerald E. Austen, James M. Cilke and William C. Randolph In this paper Austen, Cilke, and Randolph surveyed the effects of tax reform by examining charitable contributions from 1979 through 1990. This was examined following several changes to charitable giving within the tax code. These changes were predicted to result in a 15% decrease in charitable giving (267). The first change came from “The Economic Recovery Tax Act of 1981 (ERTA)…

    • 298 Words
    • 2 Pages
    Good Essays
  • Good Essays

    US Tax Reform

    • 1056 Words
    • 5 Pages

    Bruce Bartlett’s book The Benefit and The Burden is essentially a book that talks about the existing tax code in the United States and the reason(s) it is need of a reform. The author starts the book by briefly discussing the history of Federal Income Taxation in the United States starting from the post-American Revolution period at which time there was nothing called the income tax. In fact, income tax didn’t get introduced in the United States until 1861. The only form of taxation before that were…

    • 1056 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Tax Cut Vs Tax Reform

    • 101 Words
    • 1 Page

    This article has helped me understand the concept of tax reform vs. tax cut. Real reform restructures the tax code to make it simpler, fairer, and more efficient. The article notes that Tax reform, which may include tax cuts, is harder to achieve and involves tough tradeoffs. Tax cuts, on their own and without many tradeoffs, don't qualify as reform and are a much easier sell. When it comes to politics tax reform and tax cuts are always a topic, so the next time I tune into a presidential debate…

    • 101 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Uk Tax Reform

    • 3661 Words
    • 15 Pages

    in this paper that even where every one agrees that the tax system should be simple as dictated by the first maxim of Adam Smith, no country is yet to meet this standard. Questions on policy, complexity, equity, administrative efficiency, cost of compliance all increasing the cry for a tax change. Many Eastern Europeans have adopted the flax tax system and presently has an increase economic growth. However, are they fully operating the flax tax system? INTRODUCTION Taxation is a levy or a charge…

    • 3661 Words
    • 15 Pages
    Powerful Essays
  • Satisfactory Essays

    Tax Perform Introduction The tax policy by itself is very confused and costly to the government of the United States and citizens. It’s good to replace such policy for the good of the country and the people. It is so difficult to understand all those policies and the effect that it cause to the citizens. In this paper I will go over the controversial between the tax reform act of 1986 and 2014, flat tax, regressive tax, and my stance. As many politicians agree that tax reform is an excellent…

    • 168 Words
    • 1 Page
    Satisfactory Essays
  • Satisfactory Essays

    political cartoon was made to inform the American citizens about Trump’s tax reform. We know it regards Trump’s political reform due to the short speech he says, and we know it is Trump due to his dress which represents the one he had during his political campaign. The audience are the American citizens and we deduce this because the tax reform is done for the American. The political cartoon is made to underline how the tax reform will not help the middle class but the rich part of the population. We…

    • 245 Words
    • 1 Page
    Satisfactory Essays