Started by ozbob, March 30, 2016, 10:53:10 AM
QuoteStates and territories would collect their own income tax for the first time since World War II under a radical proposal to be considered at a meeting of state and federal leaders this week.Declaring himself a "pragmatist" on the issue of fixing the vertical fiscal imbalance between the Commonwealth and the states, Scott Morrison left the door open to becoming the first Australian treasurer in 75 years to allow states to control a portion of income tax.If agreed, the proposal would adopt an idea put forward in the 2014 National Commission of Audit that was dismissed by former prime minister Tony Abbott."It is a very good business practice that those who fund something are also the same people who control the cost of how it's being delivered," Mr Morrison told reporters on Wednesday.He said the answer to increasing health costs and population growth could not always be for the Commonwealth to tell the states: "Here's some more cash."State governments primarily provide expensive public infrastructure programs such as health, education and transport, while the federal government raises the bulk of the taxation revenue - referred to as the vertical fiscal imbalance. That has led to states being dependent on revenue streams from the Commonwealth and regularly demanding a greater share of the proceeds from income tax or the goods and services tax.Under the proposal floated by the Commission of Audit, the federal government would cut the marginal income tax rate to 22.5 per cent from 32.5 per cent, allowing states and territories to levy the remaining 10 per cent (or more, or less, potentially). Mr Abbott declined to pursue the concept, saying he wanted "lower, simpler, fairer taxes" rather than what he called "double taxation".Mr Morrison would not commit to the plan on Wednesday but indicated he was open to the discussions that would reportedly take place at the Council of Australian Governments meeting in Canberra, which commences on Thursday night. ...Read more: http://www.smh.com.au/federal-politics/political-news/states-could-collect-income-tax-under-radical-plan-to-be-discussed-at-coag-20160329-gntoar.html
Quote from: LD Transit on March 30, 2016, 21:51:13 PMPeople will start faking their addresses to take advantage of lower tax rates in other states.
QuoteLand tax no-brainerAbsolutely every state and federal politician capable of thinking further than their next three-word slogan, plus absolutely every review of our tax system and every half-bright economist, all know that a broad, no-exceptions land tax is what would actually lift the economy, fill the states' revenue hole and provide greater equity for the nation. The absolute no-brainer is to replace stamp duty with land tax on all properties, as the ACT government is in the process of doing. That's simply replacing a particularly bad and damaging tax with a particularly efficient tax that doesn't promote negative behaviour.
Quote from: LD Transit on March 31, 2016, 16:56:17 PMThat's Malcolm's Tax Plan? I thought it was the State Infrastructure Plan! Or Bus Reform Action Plan!I must have them confused!!
QuoteFully expect it will be withdrawn by Friday to be replaced with some other outrage.
Quote'It is withdrawn': Premiers reject Malcolm Turnbull's push to allow states to levy income tax
QuoteHe acknowledged the proposal was dead and it would not be resurrected by the Commonwealth. "There isn't anything like a consensus," he said. "That proposal is not there, it's withdrawn, it's not acceptable to COAG."Instead, leaders agreed to consider a revenue sharing proposal...
QuoteQueensland was originally part of the British-administered colony of New South Wales. This occupied a large part of the Australian continent.A desire to separate from New South Wales began to emerge as Queensland's economic significance increased and its productivity and population expanded. The people of Queensland began to realise the importance of Brisbane as a port and urban centre.The physical remoteness of Queensland from the centre of government in New South Wales and concern about the maintenance of public infrastructure, contributed to a desire for independence.
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