Turnbull and Taxes

[mufreight]

It would seem that the latest brainsnap on taxes and finance for the states by Prime Minister Turnbull was more about making the  current government unelectable than resolving the problems of funding for the states and their infrastructure needs.
While some have suggested that Queensland as a state divides which while the aspiration of some is less than practical perhaps Queensland succeeding from the Commonwealth would be more beneficial to Queen-slanders as a whole.

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[#Metro]

Do you think the Queensland Government could organise defence?

They can't even get the back of the bus door to open!

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[James]

The Turnbull plan made a lot more sense than anything Whinging Anna put forward.

Turnbull needs to grow a pair and get serious. States need a lot more mechanisms to allow them to raise funds themselves, rather than begging the Federal government at every opportunity.

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[#Metro]

One way it could work is that you have a tax ladder. Tax from lower rungs goes to States, and tax from higher rungs goes to the Commonwealth. It would need adjustment over time as well.

I don't really favour it simply because at the moment, Land Tax is where I think the game is at.

Can't hide it, is in fixed supply, low or no 'deadweight' losses, captures the value of public improvements, promotes density etc.

And almost all states and territories have land tax already, it would be a case of the states amending their own laws to broaden it.

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[Stillwater]

The states get 40 per cent of all their revenue from the Commonwealth.  Like all children, little Anna would like more pocket money from Daddy Malcolm.  That model is broken.  Of course states would love the feds to contribute more.  Remember it was suggested that the states consider a joint approach to the feds on the rate of the GST?  All of the GST goes to the states.  They refused to be seen to be putting an additional impost on the price of TVs and birthday cakes.  Oh, and they don't want to have responsibility for levying a bit of income tax either -- they just want to spend it.  Turnbull's game is to expose the states as being irresponsible when it comes to the revenue-raising side of things, now allowing him to say that Australia must 'live within its means'.  That is a heavy blow to a state that has refused to sell off assets, like the other kids on the block who sold that old bike and disused apps and games to raise money for stuff they really need.  All that Anna and Co. are left with is a slogan to shout -- SHOW US THE MONEY.  It's not there.

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[SurfRail]

Having 9 different income tax regimes would be insane.  Thank whatever powers there are that this was knocked back quickly.

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[ozbob]

My 4 year old grand daughter just sold her baby toys to get a swing ...

Life is like that hey, swings and roundabouts ...

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[#Metro]

My 4 year old grand daughter just sold her baby toys to get a swing

That's an asset sale!!

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[ozbob]

Sure is ...  and a sensible lesson in life.

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