Reforming the Australian Tax Transfer System
The tax policy agenda in Australia for more than a decade has been largely driven by a perceived need to reduce the level of income taxation and the progression of marginal rates, financing the revenue shortfall with a broad based consumption tax. A major reform of this kind is now being implemented under the Howard plan for “a new tax system”. Recent debate has turned to the possibility of an Earned Income Tax Credit scheme as a solution to the problem of an emerging class of working poor resulting from ongoing labour market reforms. This paper subjects these policy reforms to a detailed theoretical and empirical analysis. The findings suggest that the reforms are seriously limited in terms of their distributional outcomes, particularly in the context of growing wage inequality in the labour market. The analysis also shows that the reforms are unlikely to improve the efficiency and growth of the economy due to disincentive effects on labour supply and saving behaviour.
|Date of creation:||Nov 1999|
|Date of revision:|
|Contact details of provider:|| Postal: +61 2 6125 3807|
Phone: +61 2 6125 3807
Fax: +61 2 6125 0744
Web page: http://rse.anu.edu.au/cepr.php
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Apps, P.F. & Rees, R., 1993.
"Labour Supply, Household Production and Intra-Family Welfare Distribution,"
The Warwick Economics Research Paper Series (TWERPS)
405, University of Warwick, Department of Economics.
- Apps, P. F. & Rees, R., 1996. "Labour supply, household production and intra-family welfare distribution," Journal of Public Economics, Elsevier, vol. 60(2), pages 199-219, May.
- Apps, P.F. & Rees, R., 1993. "Labor Supply, Household Production and Intra-Family Welfare Distribution," Papers 248, Australian National University - Department of Economics.
- Apps, P.F. & Rees, R., 1993. "Labour Supply, Household Production and Intra-Family Welfare Distribution," Working Papers 1993-3, University of Guelph, Department of Economics and Finance.
- Apps, Patricia & Savage, Elizabeth, 1989.
"Labour supply, welfare rankings and the measurement of inequality,"
Journal of Public Economics,
Elsevier, vol. 39(3), pages 335-364, August.
- Apps,Patricia Savage,Elizabeth, 1987. "Labour supply,Welfare rankings and the measurement of inequality," Discussion Paper Serie A 152, University of Bonn, Germany.
- Richard Blundell & Alan Duncan & Julian McCrae & Costas Meghir, 2000. "The labour market impact of the working families’ tax credit," Fiscal Studies, Institute for Fiscal Studies, vol. 21(1), pages 75-103, March.
- Michael J. Boskin & Eytan Sheshinski, 1979.
"Optimal Tax Treatment of the Family: Married Couples,"
NBER Working Papers
0368, National Bureau of Economic Research, Inc.
- Boskin, Michael J. & Sheshinski, Eytan, 1983. "Optimal tax treatment of the family: Married couples," Journal of Public Economics, Elsevier, vol. 20(3), pages 281-297, April.
When requesting a correction, please mention this item's handle: RePEc:auu:dpaper:413. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.