I'm not sure why MP have all decided that moving into a higher tax bracket is a disincentive to get a promotion or work harder. What complete rubbish. Even if you do end up in the next tax bracket, you get more money. If you can't work that out you probably didn't deserve the pay rise.

It's time the Government got back to basics with the tax system. Tax is used to provide services for the community; and the more money you make, the more tax you pay. Simple.

It's good to see that Mal Turnbull has thrown the proverbial spanner into the works and now both sides of politics can't wait to cut taxes for all (some more than others). But the debate seems to be focused on the higher marginal rates, when it should be focusing on the methods wealthy people use to avoid paying their share.

Raising the bottom threshold via increasing the Low Income Tax Offset (LITO) is somewhat regressive, especially if the current clawback arrangements are retained. The universal nature of the LITO means that the bottom end of the current tax scales look something like this:

$0 to $7,566 - 0%
over $7,566 to $21,600 - 15%
over $21,600 to $27,475 - 34%
over $27,475 to $63,000 - 30%

That makes for quite a long income range where the tax scale is higher for lower income earners than the following step (34 followed by 30). If you make the LITO equal to $600, that 34 to 30 point will increase to $36,600. This does not seem like a progressive tax scale. One way to fix that would be to start the withdrawal of the LITO later, so that the 34% ended just as the next higher step started. That is exactly the same as just increasing the tax free threshold, and bringing in the higher tax bracket earlier.

Oddly, if you did the latter, people would complain that you'd increased the tax rate on those people newly in the higher bracket. Doing it via the LITO seems to blind people to what's going on. But it's identical, and it's not particularly nice now.

Flat tax of 25% for everyone (person,companies,trust,whatever) no deductions. Most people would not have to file a tax statement!

Dear Mr Craig Emerson,

I am tired of politicians falling over themselves to come up with plans for income tax cuts for the top money earners. One would think that they were trying to devise a universal panacea that would rid society of all its woes.

I would rather they devote themselves to trying to improve the lot of all Australians!

I am on a modest income ($50K pa) and I don't like paying tax (does anyone?) but ... I would rather pay the same amount of tax than enjoy a tax cut at the expense of reduced spending on Welfare, Health or Education.

I believe we need to look after our fellow Australians. Stop talking about cutting tax ... start talking more about improving the health system for everyone! Start talking about about increasing the income of our poorest Australian Brothers & Sisters! Justice for our weakest citizens should come before some imagined relief for the richest!

My wife went for elective surgery a few months ago at a private hospital (we have private helath insurance). The experience made me feel disgusted in myself. The hospital was more luxurious than a 3 star hotel ... yet the public system is crippled because of a lack of resources. But why are holders of health insurance getting a 30% rebate? Is it so they can go to a private hospital with gleaming marble floors and porcelain toilets!

What's the matter with you pollies? What are the issues in this country! Read what I said in my paragraph above. Your stupid 30% health rebate is taking resources away from dialysis machines in public hospitals and and spending it on marble floors in private hospitals.

This is not what made Australia great.

I want to live in an Australia where we Aussies look after each other.

Craig Emerson ... please tell your the Labour Party that Australia needs to get back to basics. Fix the fundamentals first ... worry about tax relief for the wealthiest later.

Your sincerely,
A Concerned Australian

I find myself in agreement with all of the above comments.

Australians should be proud to pay tax-we use that money to create the country we want to live in and also (incidently) the sort of country we will leave for those who come after us.

I would like to see the costings of the 25% plan-even if just gain a reference point.

How about a modest flat wealth tax to round the whole thing out-less that 1%

[ Quote} On " ... Howard Government's so-called welfare reforms, single mothers will lose up to 75c in every dollar they earn from taking a part-time job, and that's not counting the cost of child care, travel and work clothes".

This senseless economic reform making - proves the government has no understanding about "family matters" when it comes to the building stablity and security into the social fabric of Australian Society.

I believe all governments within this country need to re-access the the kind of "Employment Program" targets that were being argued, in the open, back during 1977.

Many of these debates held sustainable economic principals, that could to be re-emerged economically, with a brand new focus. This is because we do have more knowledge and many of the right policies available - to promote "well being" within civil society today.

For example, for many; Economic "self-determination" means we must ask questions about how to stimulate employment through local market integration, through policies that outline Ecological Sustainable Economic Development for 2005.

Sector Development does not start with bullying mothers that are socially under pressure in work domains , and already, seriously under strain.

Get it Right, for example, Child Care facilities are no way adequate for supporting Mothers, who raise children, and keep up with demands of working out side the home.

Youth progams also fall short of demand.

Community and Health Cares facilities are seriously waning.

Policy guidelines for Community Employment programming in sector development, must to be re-vamped across the board.

The whole provocation of targeting mothers through this reform appears up-side down and beyond anything reasonable