tax forum day one highlights

from ABC Online..
Tax forum day one
Prime Minister Julia Gillard says ideas must be cleverly costed.

Treasurer Wayne Swan says tax reform won't happen overnight.

Participants agree tax system needs reform but also say it's not necessarily broken.

Business push for government to cut the corporate tax rate from 30 per cent to 25 per cent, to boost productivity and investment.

Unions accuse business of being "self serving" on company tax, saying Australia's rate is relatively low and there should be no "race to the bottom".

Greens Leader Bob Brown says tax cuts should go to small businesses.

Welfare groups say businesses must pay their "fair share" of tax and many argue suggestions to increase the consumption-based GST are regressive.

Some states want the GST rate increased to compensate for any abolition of inefficient state taxes.

NSW suggests income tax sharing with the Commonwealth.
Queensland suggests harmonising payroll and property tax systems, leaving the states to compete on rates and thresholds; states in favour of further discussion.

Swan tells states "we are not a money tree", saying they should use their own tax bases more fully.

States argue they aren't getting their fair share of the $48 billion annual GST pool and the pool isn't growing fast enough due to infrastructure bottlenecks.

Support builds for an office of tax simplification to oversee reform.

Dave R.