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October 5, 2011
What will come of the Canberra tax reform summit? Will it be similar to what happened to the Henry review of the Australian tax system? Will the Gillard Government ensure that nothing much will result from the talk-fest so that it doesn't become a political issue.
The Gillard Government has enough on its hands with respect to tax reform, namely the mining tax, and the pricing of carbon that many continue to call a tax. One of the ground rules Wayne Swan, the federal Treasurer, laid down was that all proposals for tax reform had to be ''revenue neutral'' - if you cut one tax you have to increase another by the same amount. Talking down expectations is the way Labor governs these days.
I don't expect much to come out of the tax forum because the Australian political system has been struggling to secure reform over the past decade with little success. What would be of benefit is a way to institutionalize the process of tax reform so that it is taken out of the hands of vested interests preaching their standard ideas to further their own interests.
Economic inequalities in Australia are growing and without significant tax reform on income tax we can expect growing economic and social imbalance--ie., increasing private affluence and public squalor.
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Bond uni are calling it a tax to the tune of 2 million bucks a year that it will cost them.