6 sleeps. Day 31. Some more mud for your water

The Monday before the Saturday is not going to be a good one for the Liberal Party. Five days out from the election and the Canberra Times will be running an opinion piece by respected economist Ben Phillips that raises serious questions about the claim rates will triple under Labor’s tax reforms.
The Libs are claiming Phillips actually supports their claim, but it might be wishful thinking. In his column Phillips says what the ALP has been saying. Under the 10 year tax reform plan, some rates would triple. But that’s not the plan being introduced. The Barr plan introduced in this year’s budget runs over 20 years.
Phillips says under the Barr plan many people’s rates will go down, while others will go up. He also says the way Barr is going about the reform is sensible, and if done properly, will provide a fairer, more equitable and more efficient taxation base for the ACT.
Zed Seselja is expected to argue tomorrow Phillips doesn’t deny rates could triple. He’ll also make much of a line in Phillips’s column where he points out rates would have to ‘increase heavily’ to make up for the shortfall if stamp duty is abolished.
Phillips is a Principal Research Fellow at NATSEM, an independent research organisation based at the University of Canberra. His colleague, Alan Duncan, was part of the ACT Review of Taxation.
Last week review author Ted Quinlan poured scorn on the Liberal Party’s reading of his review. That was easy, given Quinlan is a former Labor Party treasurer. It might be harder to dismiss Phillips.
Don’t forget the 666 breakfast show gets caught up in election fever tomorrow, broadcasting live from the Central Cafe in Gungahlin. There’ll be a bevy of politicians, community groups and lots of fun and excitement. I know it probably doesn’t sound enticing, but it should be fun.

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One response to “6 sleeps. Day 31. Some more mud for your water

  1. The simple facts remain that the proposal to shift from one form of taxation to another means that as one falls the other rises. The amount and the rate of increase is debatable but the fact that their is an increase is unavoidable.

    If some of the ratepayers have their rates reduced it must also mean that the remains ratepayers must pay disproportionally more than those who have had third rates reduced.

    The inability of the Treasurer to explain the changes, why he waited so late in the political cycle to make the change and to then run quite on the subject for so long is an interesting point in this election.

    Why after 11 years of being the government has the Labor party been incapable of expanding the taxation base and the fact that it remains so narrow is what has allowed this debate to dominate this campaign.

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