A HAPPY & PROSPEROUS NEW YEAR: With reference to an article in Monday’s (9.1.17) edition of The Australian newspaper under the heading: ‘Growth-sapping GST must face overhaul: miners’ (see copy below) in which the article reports: “In a submission to the Productivity Commission’s five-year productivity review, the Minerals Council of Australia has called for a rethink on the GST distribution formula known as horizontal fiscal equalisation, which it warns is rewarding passive states that do not develop their resources at the expense of states that do.”
That, together with other tax fiascos seriously afflicting Western Australia such as the Grylls’ audacious proposal to increase the mining tax supports the Productivity Commission’s call for “new and novel” reform ideas, such as that advocated by Grace Collier.
With the dawning of the new year Grace Collier in The Weekend Australian, January 7, 2017 (see copy below) under the heading: ‘Australia risks being left behind as America becomes great again’ offers some intelligent gratuitous advice for the nation, but in particular for small business: “. . . ordinary workers will be allowed to “incorporate” themselves and pay company tax instead. Think about that. The highly skilled can work here and pay 49 per cent, or they can work in the US and pay 15 per cent. These policies could mean for us a brain drain and a flight of capital.”
Kevin, a reader, in response comments: “We need this desperately. With a tax rate of 15% a small business becomes much more viable and these small businesses are the drivers of employment. This is the best way to increase employment and reduce welfare dependency.”
I rest my case!