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Industry Policy or Tax Reform?
Beginning of article
While the pressures on the Government to opt for soft `industry policy' get stronger, it also needs to get tax reform right.Winton Bates asks, Can it do both?
THE Howard Govemment's announcement that it will implement tax reforms in its next term of office creates the potential for reducing the high rates of income tax that have held back the growth of Australian industry. But will this potential be realized? There is a real risk that, rather than opting for a fundamental shift in the balance between taxes on income and taxes on consumption, Australia will end up shuffling taxes on consumption and handing out additional tax breaks to a few favoured industries.
The …
