This paper examines the Turnbull Government’s 2018 personal income tax proposals by presenting a distributional analysis of the tax cuts and then looking at some general tax principles and considerations that we can use to assess the present proposals.

The most basic requirement for any tax system is to raise enough revenues to fund the legitimate expenditure requirements of governments. Since the Global Financial Crisis, tax adequacy has become an increasing concern because of ill disciplined government spending.

The debate about the Turnbull Government’s income tax cuts is being sidetracked by misconceptions.

This analysis continues the Australia Institute's analysis of the effects of the Turnbull Government’s income tax plans, by looking at the distribution of the benefits by federal electorate.

We study optimal income tax progressivity in an environment where individuals are exposed to idiosyncratic income and health risks over the lifecycle. Our results, based on a calibration for the US economy, indicate that the presence of health risk combined with incomplete insurance markets amplifies the social insurance role of progressive income taxes. The government...