Miranda Stewart writes in The Conversation (11.4.16) suggesting changes to the nation’s tax system that would help the Commonwealth and state governments to more reasonably and sustainably share the tax burden.
‘Our tax reform debate seems to be stuck. Our federal fiscal system is skewed. What kind of a fiscal bargain can we strike to build a better tax system for the future?
‘The federal fiscal bargain will always be a dynamic process. But we can re-set parts of our institutional framework to improve it.
‘… The Commonwealth government has an obligation to Australians to lead in shaping taxes for the national good. We can ensure budget sustainability by taxing a broader base – income, consumption and assets – more equally across the whole system. And we can re-set federal institutions with a new Intergovernmental Agreement to equally share income tax and GST, so that all governments in our federation are properly funded and accountable.’