Published on 01 Jan 90
by Australian Tax Research Foundation
The report examines the National Farmers Federation Outlay Tax Reform proposal which comprises the introduction of a New Zealand-type Goods and Services Tax (GST) to finance the abolition of the Wholesale Sales Tax (WST) and major cuts in petrol excise and customs duties. Warren concludes among other things that the reform measures offer significant gains to business through reduced taxes on inputs into production and the reduction in the distortion to resource allocation caused by outlay taxes. Major losers resulting from adoption of the reform measures, Warren argues, should be compensated through the existing social security system rather than through new social security mechanisms or modifications to the tax system.
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