15 June 2012

How Australia can boost its economy

A report from the Grattan Institute, entitled Game Changers, on how Australia can boost its economy. Note that it focuses solely on economic - not social or other - benefits and ignores any questions of political feasibility.

If Australian governments collected more revenue from efficient taxes that encourage economic activity, and less from inefficient, distortionary ones, GDP could increase by $25 billion per year. In particular, we need to broaden the GST to cover education, health and food, and use the revenue to reduce corporate and income taxes while compensating those on welfare.

Australian women would only have to participate in the workforce at Canadian rates to deliver a $25 billion boost to the economy. The big driver of female participation rates is how much extra income working women take home after paying tax, forgoing benefits and paying for child care... 
GDP would be $25 billion higher by 2022 if the workplace participation rate of older Australians were raised so that they were closer to levels in New Zealand. Most people retire in Australia because they “reach retirement age”...

Seems pretty simple, huh?


Post a Comment

<< Home