Paul Malone certainly got it right in "Fairness a vital part of tax reform" (Sunday Canberra Times, November 22). Some Coalition members are becoming strident in their demands for a broadening and/or increase in the GST in exchange for income tax cuts despite the fact that income tax is a fair tax, consumption taxes are not. But fair is not in the vocabulary of this bunch.
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Sure, our new PM assures us that any increase in the GST must include compensation measures for low-income earners to make it "fair". Well, Howard's GST included compensation measures which have deteriorated over time.
More importantly, low-income earners are not the ones disadvantaged by such a change in the tax mix, it is only the very wealthy who are not disadvantaged. If a GST increase is to be fair, the compensation must be progressive, not just for low-income earners.
Our erstwhile Treasurer tells us that "tax reform" is necessary to avoid the effects of bracket creep. He needs to be more careful of his language – adjustment of bracket thresholds is NOT tax reform. Any government that fails to address threshold adjustment (as most have) is guilty of increasing taxation by stealth.
But, as Malone so effectively explains, the alleged stifling effects of both bracket creep and high levels of tax for high-income earners are fictional. They are merely delusional products of neoconservative ideology. A serious and unbiased consideration of tax reform will concentrate on the unwarranted benefits conferred on those much better off, such as the loopholes available to international traders, superannuation concessions and capital gains discounts.
T. J. Marks, Holt
It's pretty obvious
Howard Carew in his letter (Letters, November 22) suggests that Gungahlin needs commercial, not residential, development so that Gungahlin residents have work opportunities close to home and don't need to commute to Civic. However, commuting to Civic is just what the ACT government wants so that it can justify the tram.
Felicity Chivas, Scullin
Lesson in history
B. Chadwick (Letters, November 22) claims that Bill Deane's reference to the Third Reich in his criticism of Annabel Crabb's Kitchen Cabinet "takes the cake" (CT 22/11). During the 1930s, magazines around the world, particularly in the US, showcased Hitler's penchant for interior decoration and his domestic life at his home in Berchtesgarden. He was represented in some articles as a man of simple, "soldierly" tastes and considerable charm.
At the same time, this seemingly friendly paragon of domestic tranquillity was planning for war, banging up people in concentration camps, torturing and murdering opponents and ferociously attacking Jews as "Untermenschen".
Of course, it is drawing a very long bow to say that the uncritical and fluffy portrayal of the cooking skills and affable charms at home of, for example, the publicly snarly Morrison or snarky Pyne have anything to with these earlier parallels.
David Roth, Kambah
More shortages loom
The present unavailability of a popular infant formula is of great concern to Australians whose children need a continuing supply.
While some people are taking advantage of a shortage, and are selling into the more profitable market in Asia, it indicates a potentially more serious problem.
How can we keep domestic food prices at a reasonable level as Australian food production remains stable or declines, and tens of millions of affluent Chinese and Indians outbid average and low-income Aussies? Not only is baby formula selling at $40 a tin but Aussie milk sells in Shanghai for $12 a litre and Wagyu beef for $350 a kilo.
Few begrudge the Australian producers good returns, enabling them to pay off debts incurred during years of drought, especially in Northern Australia.
But when the GST was introduced, the federal government subsidised low-income earners, and fresh food was exempt. In 2015 the proponents of raising the GST are wary of a political backlash from the same sector. Governments could not subsidise food bills if prices were to double or triple in response to not only high export prices but higher fuel costs, and lower production as the country becomes hotter and drier.
The emerging problem seems obvious. Not so the solutions: Australia has limited potential to grow two or three times as much meat, dairy and cereal to feed ourselves and Asia as well.
Has anyone got any answers?
John Brummell, Duffy
Face the reality
The debate about taxation in Australia looks set to become a long and wearily unproductive affair. On current showing, it will be constrained by the taxation reforms, which are deemed to be respectable and marketable by the ALP and the L-CP to their respective constituents and will not necessarily face the realities of our current budget problem. And the starting point for both parties seems to be that they will not increase the tax take; just do things differently and perhaps make them a little bit fairer.
Yet Australia is one of the lowest taxing countries in the OECD and there are numerous ways of raising revenue to fund essential services that are not yet being seriously discussed.
Across the states and federal government, Australia collects about 25per cent of its GDP in tax, compared with the OECD average of 33per cent. Eight countries – Austria, Finland, France, Norway, Italy, Belgium, Sweden and Denmark – collect more than 40per cent.
We need to have a broader debate about the kind of society we want and how we want to fund it. To assume that we will not increase the tax take is the wrong starting point.
Bob Douglas, Aranda
Flagpole a puzzle
The transformation of Canberra's gateway (Canberra Times, November 25) may imply a fundamental correction to the original plan. Canberra was planned to fit the Parliamentary Triangle, an isoceles triangle based on two points, City Hill and Capital Hill. The triangle is completed with equal arms Commonwealth Avenue and Kings Avenue, and a base on Constitution Avenue. Northbourne Avenue is an extension of Commonwealth Avenue.
The fundamental points on which the whole design is based are the apexes of Parliament Hill and City Hill. The former is graced with the flagpole of Parliament House, and the latter, with a flagpole.
Those who have braved the traffic to walk up City Hill will find however, that the flagpole is not at the apex. This is concealed at any distance by the trees that surround it. How did the flagpole come to be situated there? Was there a lack of care in situating Commonwealth Avenue when it was constructed? Was it not noticed until the bridge was built, whereupon trees were hastily planted?
Is this curious error to remain as a quaint monument to planners' mistakes?
Jack Palmer, Watson
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