How can we pick the 'good' taxes from the 'bad'? | Ask an Economist

How we tax has a big impact on our society. In this episode, Matt & Richard, answer the question: "There are so many different things and ways we can tax. How can we pick the 'good' taxes from the 'bad' taxes?

Thanks for watching the Australia Institute's Ask an Economist -- with Matt Grudnoff, senior economist at the Australia Institute, and Richard Denniss, chief economist at the Australia Institute.

*****

The Australia Institute relies on the generosity of people who care about research that matters. All donations to our Research Fund help support the Australia Institute’s original research that contributes to a more just, sustainable and peaceful society. Every donation you make of $2 or more is tax-deductible (Australia).

[gerryhouska]

We have a bipartisan support for tax cuts for the rich and services cuts for the poor.

[beesplaining]

You left the part out where the government deems sections of the population worthy or unworthy! You know, how they think high income earners and wealthy are worthy and the poor or unemployed are unworthy and they treat them accordingly.

[andrewbishop]

If you have to compensate than its a bad tax is it not as it does not really change the consumers behavior. GST should have been on everything to keep it simple.

[Mnementh]

I find it interesting that you give the carbon tax a bit of a pass on the reducing inequality metric because of the compensation that was implemented to offset the cost, whilst at the same time completely ignoring the fact that compensation was also implemented when the GST was introduced that was designed to completely offset the effects of the GST on low/middle income earners - is there a bias at work here?



Your report also condemns the excess franking credits as poor for inequality when that could not be further from the truth. The white paper (from the 80s) that suggested franking credits as a way to ensure Australian investors were not taxed twice, also suggested that the only way to make the system completely fair was to return the franking credits to those who had had their tax obligations overpaid by the companies. The system was designed so that all tax operated at the level of the individual and companies are just paying the tax on the shareholders behalf. The issue with franking credits is how it interacts with our superannuation system. This should be the target (the interaction between franking credits and super) of any policy to "fix" the problem.

[madonnawaugh]

Eat more of my beans and peas…gst free🥦🥦

[Humblehoggog]

I love you vids, but Matt's audio is so bad that I'm going to have to pass.