2014 Budget, policy versus politics: seven or 126 taxes?

Abstract

The 2014 Federal Budget's budget deficit debt levy arguably takes Australia from 125 to 126 taxes. With the high probability of significant tax reform under the new federal Liberal Coalition government, it is pertinent to reflect on the findings of recent major tax reviews in Australia (the 2009 Henry Review),1 as well as in the United Kingdom (the 2011 Mirrlees Review)2 on possible future directions. There is much similarity in the opinions of these two reviews as to what constitutes a sensible tax system. From examining their findings, this article distils seven generally broad taxes that could replace the current 126 taxes. However, the politics of tax reform is all consuming.