You’ve got to love it when the Posh Teals are making more sense for working people than apostate “Labor” Treasurer Jim “Chicken” Chalmers:
Independent MPs are urging federal Treasurer Jim Chalmers to consider ambitious reforms such as raising and broadening the 10 per cent GST to pay for lower personal income taxes, as experts warn that young workers will pay far more income tax than their parents.
Six teal MPs, who represent wealthy electorates formerly held by Liberal moderates, urged Dr Chalmers to enact wholesale change to stop income tax soaring to 60 per cent of the federal tax base, as predicted by the Intergenerational Report last week, without any policy change.
Sophie Scamps, the MP for Sydney’s northern beaches in NSW, said the government’s tax reform agenda was “too timid to date to make any significant difference”.
Tinkering with the tax system was not good enough, Curtin, Western Australia MP Kate Chaney said, confirming she supported raising the GST as part of a broader tax reform package including compensation.
“This would need to be accompanied by redistributive adjustments, so it doesn’t make our tax system less progressive,” Ms Chaney said.
So on and so forth. It makes good sense.
Consumption taxes are a lot more efficient than income taxes, so it makes sense to boost GST and cut income taxes on the grounds of reducing deadweight loss:
Moreover, if a higher GST rate is accompanied by income tax cuts oriented towards lower-income workers then the GST reform is progressive as well.
Finally, and perhaps most importantly, it will ensure that the burden of supporting the Boomer generation in retirement does not shift unfairly onto younger workers.
More GST ensures Boomers pay more (so long as accompanying tax cuts flow to youth).
But don’t hold your breath. Chicken Chalmers is a coward:
Senate dealmaker David Pocock has joined mounting calls for Jim Chalmers to launch a sweeping review of the tax system, as former Reserve Bank governor Bernie Fraser calls out the government for “pussyfooting around”.
Increasing the 10 per cent GST, taxing super profits, and an overhaul of the petroleum resource rent tax should be included in any review, Senator Pocock said.
…Dr Chalmers has ruled out sweeping tax reform, saying the Albanese government was focused on comparatively modest changes to taxes on multinationals, high-value superannuation accounts and petroleum extraction.
And a liar:
Nonetheless, the fairness brigade, including some teals, has pushed aside those who have warned all along about the need to constantly fight bracket creep, and taken up the cause with the zeal of a convert.
Even Treasurer Jim Chalmers, who like many in Labor has never been a fan of stage three, was citing them in his defence on Sunday when presented with Henry’s grave words.
“We’re acting on climate change, we are acting on housing supply and housing affordability, there are legislated tax cuts coming into the system next year, the middle of next year,” he told Sky News.
Regressive Stage 3 tax cuts for the rich recycled as a progressive tax reform agenda. As a housing crisis is recycled as affordability reform. Doing nothing on climate change is recycled as environmental leadership.
What an astonishing scumbag!
