Tuesday, February 6, 2024

CHALMERS HASN'T DROPPED THE BALL ON TAX REFORM BECAUSE HE NEVER WAS HOLDING IT

Treasurer Jim Chalmers is no progressive when it comes to taxation policy. It would be a classic case of pot calling the kettle black for Chalmers to level criticism at past Liberal treasurers for failing to revamp Australia's taxation regime, when the two words "tax reform" don't figure whatsoever in his or the government's equation. 


All Chalmers seems capable of doing is smooth talking his way out of taking responsibility for the lack of decisiveness which the Albanese government is showing to addressing long standing unfairness in the taxation lumped on middle to high income earners. 


With GST having been a huge part of the revenue base for going on 30 years, the fact is that an income tax bracket of 37% should not even exist in 2024. 


In fact, had previous governments starting with the Howard government from the mid 1990's onwards had the vision to pursue sweeping tax reform, including the prospect of an across the board consumption tax, then present day there would be no need for Australians to be paying anything above 15% income tax, whether they earn $20000 or $200000 a year. 


Consumption tax models, some without any income tax component at all, have been successfully adopted and implemented in various overseas countries. So why is Chalmers stuck in taxation dark age? He has plenty of precedence from overseas to work from, to become a tax reform visionary, instead of a sloth. 


Australia is one of the most heavily taxed countries on earth. High income tax brackets is just the tip of the iceberg. Coupled with the ultra predatory capital gains tax, ambition and entrepreneurship have been the biggest losers in this country for a long time. Let's see if Chalmers now decides to be the tax reformist, and not the conformist.

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