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Older not wiser : Comments
By Ross Elliott, published 23/9/2013Australia has an ageing society and while living longer is good news for many, there are some major economic issues we need to understand to avert a huge problem in the years to come.
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At every turn we seem to select politicians who just don't get it; or if they do, have vested interests in not attacking this problem with the only solutions available, save say compulsory euthanasia?
The answer is and always was, massive economic and tax reform.
We also need a government ready willing and able to get back into the housing market and able to roll out essential infrastructure ahead of the housing curve.
To 1/, put downward pressure on house prices; and 2/, boost the non mining economy.
It can do this two ways; 1/, by building houses via contractors and a tendering process; 2/, by providing low cost loans to intending new build, new home buyers!
The second part of any essential reform has to be tax reform.
We simply cannot ask a shrinking cohort of taxpayers to bear greater and greater burdens!
What is required is a stand alone broad based tax system that taxes all expenditure, without exclusion or exception.
If that were the case, a percentage as small as 4.8% would collect enough revenue to more than replace current inland revenue.
In fact, such a single stand alone scheme, would increase income by around 100 billion PA. This would end the structural deficit, the destiny of demography; and, also allow business and industry to pocket the average 7% they currently shell out for compliance!
With the repeal of all other taxes including fuel excise and the ubiquitous GST, the average bottom line would be improved by around 30%.
Household disposals would improve by around 25%, making a non contributory super of around 15%+ immediately available/doable!
The tax rate could be varied region by region to alone control inflation or stagnation!
The foregone GST could be replaced by a direct funding model for health, education and coordinated public transport, inclusive of very rapid rail.
Very big frogs in very small ponds will not like any of my solutions, given they tend to shrink over-bloated frogs down to a size more in keeping with the size of their pools!
Rhrosty.