Thursday, April 20, 2006

Howard and Costello squander opportunity for genuine tax reform

So John Howard thinks that doing tax returns is popular (Age 20/4). Well they aren’t for me, or the other 80 per cent of Australians that find them too onerous and confusing to do themselves.

Paying tax agents over $1 billion annually to do our tax returns is a monumental waste of our money – which would be better spent improving health or education.

Instead, Howard and Costello support a complex and inefficient income tax system that constantly raises our tax via bracket creep so they can hand out tax cuts during election years. An honest government would index the brackets.

With a big surplus this year, Howard and Costello are squandering a great opportunity for genuine tax reform that could simplify our lives and address the creeping poverty trap that affects many lower income people.

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