Lappy I note Mike Keating called the projected growth forecasts from the company tax cuts, as "
infinitesimally small
" and "
amounting to "margin of error stuff" that few economic modellers would take seriously over 20-and 30-year time spans.
Acknowledging the problem, Dr Keating said recent governments appeared to have concluded that tough decisions would not be valued by voters, even though past governments had been successful after enacting difficult reforms.
"What we've got, dare I say it, is failure of leadership, and nothing could be more indicative of failure of leadership, than handing out tax cuts that can't be afforded," he said.
With the Turnbull government pursuing generous company tax cuts from 30 per cent to 25 and unspecified income tax reductions in its May Budget, Dr Keating, said political short-termism added to the danger of governments funding ordinary operating expenses through borrowings.
Dr Keating, who also headed up the Finance Department in the 1980s, has joined nearly 50 economists, academics, and other public figures in calling for a re-think on tax policy.
"You really got to take a view on what's the outlook for expenditure and then you have to raise the taxation to pay for it," he said.
"The dominance of the ‘small government’ philosophy has led to enduring shortages of revenue, even in the good years, and especially recently."
“A sound taxation system that provides the necessary revenue is critical to our future well-being and the growth in our economic capacity.”
The signatories say if anything, Australia is moving in the wrong direction with the current tax-to-GDP ratio of 28.2 per cent falling well below the OECD average of 34.4 per cent.
“We call on all political leaders to reject a tax cuts race to the bottom, and instead focus on tackling tax avoidance, closing tax loopholes, and unfair tax concessions in order to build a stronger revenue base for the nation,” the signatories said.
disallowed/politics/federal/austral...-says-former-top-advisor-20180416-p4z9y9.html
Raider
