The tax issue and
the Treasurer’s professional conservatism about this is the issue of substance
being debated among members of the commentariat. The Prime Minister ran up the
flag and Labor, Malcolm Turnbull and most economists have quickly saluted. Paul
Kelly puts it all in context in The Oz. His main argument is that “For all
the mantra about fairness, Australia’s system is highly
progressive and will remain this way – the real issue is the need to better
balance fairness with competitiveness.”

Nick Gruen’s
take for Henry is also well worth a read. He’s an economic
rationalist and sides with the Treasurer in the current debate. “For its first
ten years in opposition the ALP tried to forget its proud history as an economic
reformer only to discover the electorate thought its economic credibility a pale
imitation of its opponent’s. It will be the pale imitation again if it ditches
Peter Costello’s idea that those pulling in $125,000 should pay a little more,
so others can live a little better.”

This debate has a
good way to run yet. We fervently hope that the Treasurer seizes this moment to
lock in a new competitive advantage for Australia as a moderate income taxing
nation. This is the single most important economic reform we could make, far
more important than industrial relations reform.

Read more at
Henry Thornton.