Business and Government have argued that we should rely less on personal income taxes and more on the GST because this would be good for the economy. Senior journalist Paul Kelly recently said this idea was 'pivotal' to the tax reform debate. In my blog 'Who's the fairest and most efficient of them all?" earlier this year, I challenged this view.
Treasury modelling of the economic impact of different taxes tucked away on p.32 of the Government's Tax Discussion Paper confirms my doubts. It should change the debate.
Now, Treasury has released the details of that modelling.