Published on 01 Aug 11
by "THE TAX SPECIALIST" JOURNAL ARTICLE
The most recent Australian tax review, the Henry Review, is the latest in a long line of Australian tax reform projects. It will not be the last. The purpose of this article is to place the Henry Review and the forthcoming Tax Forum in the context of recent trends in tax policy analysis. The theory of tax design has changed, which means that the modern vision about what a tax system should look like is no longer what we had been led to believe. One object of this article is to recount this change in philosophy. A second is to show where it can lead.
The article examines previous assumptions about good tax design, the influence of welfare economics and the optimal tax literature on current thinking, and the most popular models of corporate tax reform.