ISI floats "radical" tax package
An ISI paper on reform of the tax system recommends a capital gains tax, a universal benefit for adults, a flat tax rate and higher GST.
Tuesday, October 26th 1999, 12:00AM
Amongst its proposals are support for a capital gains tax, a universal benefit for adults, a flat tax rate and higher GST.
The paper Towards an Ideal Taxation Regime, which was finished in August, has been kept under wraps by the association. The only people outside of the ISI who have seen copies are selected politicians.
The ISI says the idea of the paper is to broaden the scope of the current tax debate.
"We need to move beyond 'left vs right' or 'more vs less', to focus on developing a framework that encourages individuals to save in a simple and efficient manner based on decisions that are not driven by tax consideration."
The ISI acknowledges some of the ideas "may be seen as radical", but describes the paper as a second determined foray into expanding the level of knowledge and debate on issues which affect retirement income policies.
"The ISI is not looking for favoured tax treatment for the products its member companies sell," it says.
Like the Labour Party, the ISI is saying the time has arrived for a first principles review of the taxation system.
On the face of the paper it appears to be fairly right wing, however the author (expecting this criticism) has added a "Left-Right analysis" of the package claiming there are elements which appeal to both sides.
The five policy recommendations presented in the Infometrics report are:
The ISI says these recommendations are being put up for discussion: "ISI members are not promoting any of the specific recommendations."
More details, plus reaction to the report, will be available soon in the features section.
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