unfortunately this is a byproduct of how our constitution is written
the first Uniform Tax case in 1942 effectively gave a monopoly on income tax to the federal government… ever since, they’ve been addicted to it
as a result we have the second-highest corporate income taxes and the fourth-highest personal income taxes in the OECD
it’s absolutely atrocious for the economy. We should cut both corporate and personal income tax to be closer to the OECD average, and instead focus on taxing resource extraction, assets and consumption (which are all incredibly undertaxed by international standards)
Will never happen though - requires too much compromise between self-interested state and federal governments. You just have to look at what happens when anyone talks about raising the GST.
the first Uniform Tax case in 1942 effectively gave a monopoly on income tax to the federal government… ever since, they’ve been addicted to it
as a result we have the second-highest corporate income taxes and the fourth-highest personal income taxes in the OECD
it’s absolutely atrocious for the economy. We should cut both corporate and personal income tax to be closer to the OECD average, and instead focus on taxing resource extraction, assets and consumption (which are all incredibly undertaxed by international standards)
Will never happen though - requires too much compromise between self-interested state and federal governments. You just have to look at what happens when anyone talks about raising the GST.
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