You say there's not enough tax to go around, yet you are suggesting tax cuts. If it were that simple there would be a lot more people out of work;; So the system is round to make things go round..
If we are running short of tax money raise GST that covers the lot. IT"s user pays. The more you get fat the more tax you contribute.
Thats why you ideas have flaws. Thats my opinion;;

I know, I know here he goes again !
The way it used to be over.
Growth is literally running on fumes.
Most of solutions being proposed here, especially those relating to
taxation are redundant. In future the medical system that we now have
will be even more constrained by lack of funding.

The financial squeeze on governments will steadily increase until it
is realised that the lack of growth is permanent.

If you want to see a snapshot of what is in the future for us have a
read of Prof Kjell Aleklett's blog on Houston Texas.

http://aleklett.wordpress.com/2010/10/05/has-texas-pased-the-peak/

True, we will not go exactly the same way as the US but we are in
danger of a similar path. It is inevitable that China will have to
pull in its horns fairly soon as the exponential growth simply cannot
continue, there are not enough resources in the world !

When that happens we will go the same way as Houston.
In the US they are either reducing the size of police forces or
getting rid of their police forces altogether and relying on state police.
They are turning tarred roads back into gravel roads. Their bridges
are literally falling down. Their infrastructure is literally falling apart.
Local and state governments are broke and California is to all
intents and purposes bankrupt.

With our debt increasing at the rate it is we will be hard put to
avoid a similar fate.

I thinkit is time someone had a very serious look at a transaction tax.

It is said that such a tax could rid us of every other tax, including GST, payroll and company/personal taxes.

Why is it not being seriously considered.