The argument in favour of and the opposition to the flat rate of tax for individuals
Source: Australian Tax Research Foundation
Published Date: 1 Jan 1981
The simplification of the personal income tax rate scale has been an important issue in the tax reform debate in Australia over the past decade. As a result, the tax scale has, over the period, been reduced from a 27 step scale to the existing three step scale. However, for some, the process needs to continue in order that the scale is simplified to the ultimate extent of having only one rate. The 'flat rate of tax' proponents seek the introduction of one low rate of tax to be imposed on all income. It is argued that a 'flat tax' would reduce inflation and unemployment, lower health and education costs and, most importantly, greatly increase incentives to work. Whereas the opponents to a 'flat tax' argue that the tax would be extremely unfair and would discriminate against the low income groups.
Recently, the Australian Business Economists and the New South Wales Institute of Political Science conducted a joint seminar on the topic of 'A Flat Rate Tax for Australia'. At the seminar, Mr. Richard Tanner presented the case for the introduction of a flat tax and Mr. David Collins presented the opposing argument. Bearing in mind the interest in the 'flat tax' proposals, the Taxation Institute Research and Education Trust decided to publish the two papers presented providing a convenient reference source of the issues surrounding this controversial topic.
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
- Published By: David Collins, R.J Tanner
- Published On:1 Jan 1981
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page