John Menadue. Tax reform and vested interests.

We are in the midst of a misleading campaign on tax and budget reform.

Large corporations and high income groups are pressing the government to increase the GST in order to reduce company tax and taxes for high-income groups. I have seldom seen such a blatant and self-interested campaign by vested interests. And they seriously suggest that it is in the name of tax and presumably, necessary budget reform. Even Mike Baird has joined in this nonsense.

We are told by these vested interests that the benefits of tax advantages for the powerful and wealthy will ‘trickle down’ to the rest of us, including the disadvantaged and the poor. These stories about trickle-down have been with us for years. It is claimed that the ‘trickle down’ from the wealth would encourage ‘growth’ and ‘jobs’. But there is no empirical evidence anywhere to back up this argument. Scott Morrison continues in the same vein, that if only there were more tax incentives, we would ‘work, save and invest’ more.

See an excellent article on this issue by Ross Gittins in the SMH on February 1, entitled ‘Business-led tax “reform” won’t fly’.






John Menadue is the publisher of Pearls & Irritations. He has had a distinguished career both in the private sector and in the Public Service.

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