If an expenditure tax was the only tax collected, we could use it and the tax rate to alone control all inflation or stagnation.

Simultaneously and region by region wherever necessary!

Meaning interest rates could come down to set and forget historical lows!

And given we would be able to jettison every other tax measure, turbocharge the non mining economy as never before; given most Australian based companies/firms would be around 30% better off, courtesy of foreign firms no longer able to duck shove their tax liabilities off on to those who still pay our tax.

And we need a better system that simply charges the nation's GNP, all of our tax (as outlined), so that a diminishing cohort of tax payers aren't lumbered with greater and greater charges, even as services disappear!

And given an expenditure tax was the only tax taken or needed, most Australian households would be around 25% better off and therefore able to finally afford a 15% non contributory super! Grow the economy (GNP) and you then automatically increase the tax base!

And the brand new surpluses we'd create, could be used in a brand new franchised Peoples'bank, used to distribute affordable venture capital, to finally commercialize our best ideas right here; via cooperative capitalism; and or family firms, or both!

And a natural home and natural fit for former tax practitioners, able to use their considerable number crunching skills for something genuinely productive.

And if the tax accountant doesn't know who has the business smarts in the community, who would?
Rhrosty.

Thanks Tristan. A lot of good ideas here. Australia is a low taxing low spending country in OECD terms and we could easily tax the rich and capital to provide for better public education, hospitals, transport and better benefits for the poor and less well off, including pensioners. Yours is a good contribution to Hockey's national conversation on tax reform, one that challenges the status quo of taxing ordinary working people for the bosses.

The worst taxes are the waste of Green vanity, failed solar and wind, yet to be a net provider of energy. The worst taxes are the regressive impositions in the Power bill to feather bed and bloat the ETU via poles and wires. The worst taxes is the runaway growth of political fiefdoms such as Triggs human rights debacle and the Federal / State bureaucracies.

As the highly productive Kerry Packer said "...Anybody in this country who does not minimise his tax wants his head read. I can tell you as a government that you are not spending it so well that we should be donating extra."

the other big issue is transfer pricing, where companies purchase goods and services from related companies operating in lower tax nations, the issue is relatively simple

allowable deductions are those where the goods and services that are purchased are done so at a market rate, so therefore for all goods and services above $50 000 purchased from a related company operating in a nation with a lower tax rate to be able to claim the purchase the company needs to demonstrate there was a commercial tender process, and to define the minimum reguirements for a commercial tender in legislation

for expenses related to loans from related companies, the tax act should have a commercial loan deeming rate which would put a cap on expenses associated with intercompany loans.

furthermore the cap should be calculated on the basis of the exchange rate when the loan is made, so that currency risks associated with the loan are fully with the company and not transferred to the taxpayer.

McCackie, where are these failed solar and wind schemes? In my state they're very much a success, and have long been net providers of energy. Here in SA they're responsible for about a third of our energy production. Right now it's double that as it's a windy day.

If an unavoidable expenditure tax were the only tax levied or needing to be levied, and it could be, if the missing political will were restored/or found; those companies chasing goods or services would make dam sure that a real tender process was applied, as the only means possible to minimize their own tax impost!

And a good thing given these costs are always passed on and cascade throughout the length and breadth of the supply chain, until they reach those who just can't pass them on!

And then we wonder why the average mug out there in mugsville pays a 30% premium at the checkout!?
Rhrosty.