Progressive think tank Per Capita is gratified to see that Joe Hockey, the Shadow Treasurer, has incorporated one of its policy recommendations as a major feature of Coalition tax policy, announced today. As part of its Tax Survey published in January 2010, Per Capita recommended that the Australian Taxation Office provide taxpayers with a breakdown of the use of their personal tax income by policy area.
The Per Capita Survey Report found that: “…People have a poor understanding of the balance between personal and company tax, and of the relative expenditures allocated to various policy areas…. This lack of awareness suggests a need for better provision of information about the tax system. Given that the ATO has an individual relationship with each taxpayer and a complete picture of both their individual tax position and the nation’s tax system as a whole, it might provide taxpayers with customized information such as:
- Position on the national income distribution
- Average total tax rate compared with national average
- A breakdown of national spending by individual policy area
- An estimated breakdown of the use of personal tax contributions by individual policy area.”
Mr Hockey today announced that a Coalition government would issue every taxpayer a receipt detailing where their taxes have been spent according to particular policy portfolios. The Coalition has released the following graphic to illustrate its plan:
While Per Capita welcomes the appropriation of its policy recommendation by the Coalition, it also draws Mr Hockey’s attention to the other key findings of the Survey. These include:
- Australians want a more progressive tax system
- Australians want governments to spend more on public services, especially health
- Australians support the use of a deficit during an economic downturn
- Australians would prefer to see their tax system simplified
- There is considerable lack of awareness about patterns of taxation and expenditure
- A public dissonance for increased spending but lower taxes still exists
“The Coalition has repudiated the use of debt to fund a deficit and has called for a flatter tax system with reduced public spending. This ignores an important groundswell of opinion amongst the Australian public. Despite this, Per Capita welcomes Mr Hockey’s announcement and will happily acknowledge the debt,” said Per Capita’s Executive Director, David Hetherington.
“Per Capita calls on Mr Hockey to ensure that Coalition policy is one that is in touch with Australians’ aspirations for a simpler, smarter and more progressive tax system.”
The full survey report can be downloaded by clicking here.
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