Gst Reform Case Study

While most taxpayers agree that tax reform is necessary for our country the problem they encounter is the difficulty they experience when trying to understand all the political terms used when discussing tax reform. This paper is an attempt to help the taxpayers of our country to better understand the political terminology and gain knowledge about some of the proposals that have been explored.

The budget aims to establish and stimulate a stable economy, invest in Australia’s future and provide a fairer tax and welfare system.

The Commonwealth of Australia is both a representative democracy and a constitutional monarchy with Queen Elizabeth II as Australia 's head of state. (How government works, 2016). Since the 1990s globalization has gained widespread currency in Australia on a social, economic, political and cultural level. (Holmes, 2012, p. 340) Laws and politics have an influence on Australia’s economic system, which is capitalism and socialism. (Political Economy, n.d.) Analysis of political and economic approaches by government can add insight into the flow on effects on a community and its individual.

Before reading the paper, I had no idea what “horizontal equity” and “vertical equity” were. These terms were described in detail at the beginning of the paper and allowed me to more thoroughly understand the key points that the authors made. When explaining how certain parts of the Australian tax system function, the authors made analogies to compare the tax system in Australia to that of other countries, such as the United States. However, some words and terms that the authors used were not clearly defined in the text. Luckily, I have had experience with some of the vocabulary words that the author used, such as "tax burden” and "progressive income tax system". Although, When it came to terms like “marginal income tax”, I had to do further background research so that I could gain an in-depth understanding of what the authors were saying. The authors state, "at the end of 2012, the marginal income tax rate for a person on average weekly earnings had risen to 37%". This left me wondering what marginal income tax is, and why Australia’s marginal income tax had fluctuated so much; neither of these items were explained in the paper. I believe that an average reader, with very little tax or business knowledge, would be unfamiliar with a large majority of these terms. If I were the authors, I would more clearly define the terms that I commonly used throughout the

Whilst William McBride, chief economist for Tax Foundation website, sided with tax cut policy saying that to strengthen the financial state, “we should lower taxes on the earnings of capital,” “workers and the businesses that hire them,” Chye-ching Huang and Nathaniel Frentz, both are senior Tax Policy analysts, completely debunked the evidence McBride provided to support his argument, which includes the review of twenty-three among twenty-six studies he thought to advocate the idea. Indeed, as one conducts research, regardless of what sources it comes from, agreement over tax issue should never be found as a unanimous answer. One of the reasons why it is so difficult to reach a definite conclusion rests on the fact that although some statistics may show economic growth was in step with tax cut, correlation does not mean causation: just as ice-cream sale and murder rate increase during summer time, it is baseless to assume that higher ice-cream consumption leads to higher odds for crime. Moreover, because there is a great amount of research has been done on taxes, different interpretations from these data are understandable. Before concluding that “nearly every empirical study of taxes and economic growth published in a peer reviewed academic journal” finds cutting taxes improves the financial status quo, thus, people need to consider

Australia 's Federal System is dynamic and the division of lawmaking power between the Commonwealth and State since 1901 has changed dramatically; Critically discuss, focussing on the major reasons for those changes.

Where there are problems, they are often with the way the Australian federal system operates, rather than with federalism itself. Rather than criticising our federal system, we should be working to make better use of its advantages
in order to improve our prosperity. In particular, the reform of the allocation of powers and responsibilities between the Commonwealth and the States, and reform of fiscal federalism, are desperately needed. (Twomey and Withers, 2007)

One key initiative for the Federal Budget of 2014/15 is the ‘Deficit Levy’ that will effect over 400 000 of Australia’s high-income earners. From 1 July 2014 until 30 June 2017, the Temporary Budget Repair Levy will

In the article “Job One: Tax Code Rewrite,” William O’Keefe, an author who cares about tax reform, argues that the Obama Administration should rewrite the tax code in order to reduce the unemployment rate. He supports this claim with a formal tone by using opinions and anecdotes as evidence. According to William, we need “systematic reforms to our tax code and regulatory policy.” The author targets a tax reform audience that cares about the economy. William’s purpose is to persuade readers that Obama’s stimulus tax bill will not help the economy or business in the long run. This work is significant because it challenges the Obama Administration to rethink their priorities.

Mr Campbell Newman was a popular lord mayor as a member of the Liberal Party, who served the Queensland government for three years from 2012 – 2015 (Lewis, 2015). In the recent 2015 Queensland state election, Newman was heavily punished by the public voters of Queensland as a result of treating the public servants unfairly by cutting jobs in contrast to his promises. He also claimed that there would be no forced redundancies and that he would try to lower the unemployment rate, yet these promises were never met. In support of this, the following essay argues that Campbell Newman didn’t interfere with the free market economy of Queensland, which can be beneficial for consumers in many ways because there is no government intervention. Instead,

But the most crucial question they face is not how to make Western Australia happy with the fairness of GST distribution. Nor even whether the three Labor premiers – now balanced with the three Coalition ones – can convince the federal ALP that Tony Abbott’s

In this view governments are small, protectors of individual choice and focussed on the wealth creation that will trickle down to the more vulnerable. This Strategy was commissioned by the State Government but it only has some of the policy levers to tackle cost of living. Income support is a Australian Government matter as are most of the macroeconomic levers influencing the cost of living. Also taxation revenues are dominated by the Australian Government, and state taxation accounts for only a small proportion of total government revenues. Nevertheless there are goods and services over which the State Government has some control of pricing policy. Within these constraints, the Strategy focuses on feasible options for the State Government to pursue. The aim is to identify a framework and set of actions that can be delivered in the context of an already tight State Budget. This is especially important given that the State's revenue base is already largely regressive, that is the poor pay relatively more. In times of fiscal constraint where State Government departments and Government Business Enterprises (GBEs) are to find savings, they often turn to strategies, which are also regressive. In recent months we have witnessed an array of responses by departments and GBEs designed in part to improve their bottom lines. These responses include increases to user charges such as public housing rents and adult education fees,

In Australia, there is an emerging consensus that the government should take further actions to help mitigate and combat climate change. The current most accepted policy by government is the introduction of a carbon tax followed by an ETS in 2015. However we are focusing on the carbon tax in this essay and not the ETS. Here is a brief explanation of the dynamics of a carbon tax. A carbon tax is a tax on energy sources, which emit carbon dioxide (Co2). Therefore, carbon taxes address the problem of negative externality. Externalities are the subsequent effects when individual production or consumption of a particular good or service imposes costs or benefits on others. Therefore negative externalities are effects, which pose harm to others without their direct interaction (Basic Economics 2011). However, usual market practices and transactions do not reflect these cost and benefits in the prices involved in the transaction, or take into account in their transaction decision. Therefore this is a form of market failure. By imposing a cost on these negative externalities, the hidden cost can be addressed. Ultimately the purpose of a carbon tax is to reduce emissions of carbon dioxide and therefore reduce

In February 2011, the Australian federal government declared a scheme to implement a Carbon Tax from July 1, 2012. Implementing this scheme has generated a controversial debate between Australians. The term “Carbon tax” refers to an environmental tax forcing polluters to pay per ton of carbon which they release into the atmosphere. This essay will provide the economical, social and political implication of carbon taxes, also with its introduction who will benefit and who would suffer.

When the government gets involved and taxes goods and services, it raises revenue for the government, decreases the quantity of goods produced and consumed and therefore, both consumers and the producer of the good will pay, splitting the costs of the tax and leveling up with society’s.