Published on 01 Jan 87
by Australian Tax Research Foundation
The principal objective of the Commonwealth Grants Commission is to enable States to function at a standard not appreciably below that of other States without having to levy taxation and other charges of greater severity than those in other States.
In carrying out its objective, the Commission has measured States revenue raising capacity on a tax by tax basis, but a number of submissions made in recent years argue that the use of a global measure would be preferable.
In this paper, prepared originally for the N.S.W. Government, Professor Collins provides a comparative evaluation of the tax-by-tax and global approaches to fiscal capacity equalisation and examines the composition of an appropriate global measure.
David Collins was an Adjunct Professor in Economics, Macquarie University at the time of writing this paper. Current at 23 October 2012