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Current Topics - Research Paper Example

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The primary goal for the tax review is to provide a fair tax and transfer system for everyone. That has taken a full study and looking very closely at how the economic part of the government has been run in the past. Through a long a grueling study of all of the needs of the populations in Australia and trying to determine the best way to show fairness to all of those populations through all of the tax and transfer processes, these proposals were developed.
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Download file to see previous pages There is good and there is bad in the proposals and of course hte mining industry is fighting the whole thing. With that in mind, this paper will look at three of the proposals and compare them to the design principles that are to include fairness. The principles that will be used here are simplicity, equity of fairness, and efficiency.
The simplicity of this program is excellent. It is clear and easy to understand both for those that are young and just beginning to plan their retirement and those that have been saving for awhile. The catch up issue for older Australians may be a little more difficult than the rest as even though it does give a good opportunity for catch up, understanding how they might do that is difficult. They may need some advice on the best way to manage that in such a way that it is to their advantage then and now.
At the same time, it seems very equitable. It would have been very easy to change the rule now and not go back and help those approaching retirement. That would have caused a very unequitable situation for the elderly Australian's now. For example the new guarantee has been extended to workers aged 70 to 75 so they can be on an equal footing with the younger workers (futuretax.gov). It also allows for changes to key amounts when there have been breaks in working throughout a career.
Efficiency by the definition given appears to be well distributed. The funds that are put away from this process will go to build infrastructure and increase jobs for the young who will continue to work toward funding the process. This seems to be a very effective and quite efficient way of doing this. However, it works very much like the social security system in the United States (sociealsecurity.gov) which over the years has become a disaster and that may warn that this needs to be watched closely. In the U.S. social security monies were paid in for retirement and used for other things and now with a large retirement about to happen, there is no money. There is also going to be a smaller group of people to fund it over the next few years so there is every possibility that the system will collapse and many will be left without any retirement.

Cutting the Company Tax
This proposal is intended to use funds from the mining industry to reduce the overall tax that companies in Australia are presently paying. By doing this, it is meant to make Australia more competitive and increase jobs in this country. The plan is easy to understand and is written in such a way that we can all understand it. Attracting industry to Australia is important in keeping the economy healthy. This move will also make the Australian dollar stronger which in the world economy today is very important.
This is definitively a proposal that is fair to everyone. In fact it affects everyone in the country in one way of another. The mining industry which is doing very well now will contribute funding to the treasury which allows them to reduce taxes on industry in general which then encourages more industry to come here. That industry, of course, increases jobs which then increases the tax base again. It will move Australia from 22nd to 17th among other countries of the same ...Download file to see next pagesRead More
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