Innovation!

"Experts stunned by Turnbull's 'retrograde' tax plan"

"Tax experts have slammed Prime Minister Malcolm Turnbull's proposal to allow states to levy income tax as a way of funding state services, taking the tax system back to the 1940s.

CPA Australia boss Alex Malley was stunned by the proposal, saying it will create enormous dysfunction in Australia.

He said it will make people think more about their state rather the country as a whole, like in the US and Canada, make switching between states more likely, while doing nothing to move the nation forward.

"We are struggling to find how this is a sustainable model for the future," he told AAP on Wednesday"

"Mr Turnbull confirmed he has put forward the idea to premiers and first ministers that would see the federal government reduce its income tax by an agreed percentage and allow state governments to levy an income tax equal to that amount.

The Tax Institute described it as a "retrograde and flawed" concept.

The institute's president Arthur Athanasiou said he has been continually urging governments to shift away from income and inefficient taxes for the bulk of revenues.

"Whilst the proposal may present some theoretical advantage, government time and resources would be far better spent on reforming the present tax system," he said in statement."

"Mr Turnbull said there would be no increase in income tax from a taxpayers' point of view, but Mr Malley disagrees, saying every state has a different set of circumstances, cost structures and problems.

"It will create more red tape, more taxes, everything this government says it doesn't stand for," Mr Malley said.

Constitutional expert George Williams said the states would be able to impose their own differential tax rates, something the constitution does not allow the commonwealth to dictate.

There would be no need for a collective agreement - meaning individual states could go it alone.

Market Economics managing director Stephen Koukoulas said it will allow the states to cover the costs of heavily in-demand services and make them more responsible for managing their own books."

http://www.sbs.com.au/news/article/2016/03/30/experts-stunned-turnbulls-retrograde-tax-plan

Will this mean filling out two income tax returns each year: one for the Australian Taxation Office and another for the State Revenue Office?

I have trouble filling out one let alone worry about doing two.

I think Turnbull came up with his two tax system only because The Onion Eater has already said it won't work and he will now be able to tell people that he is not following The Onion Eater's ideas.

Come on, Foxy.

Why aren't you out here commenting on the Turnbull govt's latest brain explosion?

Out waddles Mr Turnbull and delivers an off-the-cuff expression of interest in delivering income taxing back to the states - drops it like a cow pat in the grass - and leaves economic experts shaking their heads.

"Here we go again. The latest "big idea" from the federal government will now dominate national political conversation for a few days. The concept of states raising their own income taxes may seem useful as a temporary distraction for the public and the premiers.

But the proposal will progress little beyond that. Nor does it deserve to – certainly not in the haphazard way in which it has been presented by the Prime Minister and the Treasurer.

It is not just the Tax Institute calling this "a retrograde and flawed concept" that would add to red tape and be likely to increase the tax burden on already stressed taxpayers.

The business community, in what is developing into a regular pattern, has been completely side-swiped by Turnbull's unexpected decision to present this option to state leaders this week. The Prime Minister enthusiastically describes it as the most fundamental reform to the Federation in generations.

"Business will describe it very differently – as yet another layer of complexity and costs for them. Even for small businesses not operating across state borders, the notion of dealing with a new state income tax will hardly sound reassuring."

"But Labor is already revelling in immediate attacks on what it calls an extraordinary and backward-looking announcement (given 1942 was when the states ceded their ability to raise income tax) that will inevitably result in double taxation and higher taxes."

http://www.afr.com/opinion/columnists/malcolm-turnbulls-big-tax-idea-destined-for-the-bottom-drawer-20160330-gnucm0#ixzz44NqR9x00

No thought.

Dropped from on high.

Scott Morrison probably not even in the loop.

More hopelessness and knee jerk policy from an incompetent govt.

Innovative - NOT!

Milk Em' Malcolm (new title) is starting to look desperate, as the straight jacket the hard right faction have him in is being tightened even further. First it was a proposed 50% plus increase in the GST, now its double income tax, an idea the fraudulent Tax Em' Tony regime was not willing to countenance, well not publicly. Why not go the whole hog and have local government also impose their own income tax as well! The Bugsy Baird government here in NSW would have a field day with that one, they have been wasting billions of taxpayer dollars on harebrained schemes such as 'Westconnex' ever since they fraudulently came to power in 2011. What will be the next oddball idea Turnball throws out to the electorate, a tax on spats and straw hats, why not, he is showing himself to be a 1920's regressive! Judging by what Turnball proposed so far Tony Baloney's knighthood for Prince Dill was not such a bad idea after all.

Foxy,

Abbott ripped $120 million out of science on the basis that it was "waste".

Turnbull restored $100 million of it, rebadged it as "innovation" and wants to claim some sort of credit for it.

Likewise, Abbott took money away from womens' shelters and other support services but Turnbull threw back a few crumbs and called it something else.

Now Turnbull's panicked about increasing the GST but trying to do the same thing another way.

There's no "innovation" here beyond the use of spin.

It's a bit like saying I'm a good person because I don't beat my wife as much as I used to.

Here's a good one...

"Malcolm Turnbull's education revolution: end federal support for public schools"

"The federal government would stop funding public schools while continuing to support private schools under a dramatic change to the nation's education system outlined by Prime Minister Malcolm Turnbull."

http://www.smh.com.au/federal-politics/political-news/malcolm-turnbulls-education-revolution-end-federal-support-for-public-schools-20160330-gnuo4l.html#ixzz44Qik335O

Scott Morrison said today that Turnbull didn't necessarily confirm the tax proposal was on....

Make of that what you will - after all, Scottie is merely the federal Treasurer - why would the PM tell him of the biggest tax change since WWII before announcing it at a brief presser!