To Regress or Not to Regress

Fuel tax indexation: the pressure is on

Did someone say 'tax reform'?

The term sounds so innocuous, even good, but that depends on whose mouth it comes out of. A reform that comprises the introduction of , or increase in, a regressive tax, is a reform backwards.

A rise in fuel excise is an increase in a regressive tax. Any rise or increase in the base of the GST would also be an increase in a regressive tax. These are both moves this government is contemplating, whether they admit it or not.

Regressive taxation is LNP policy whether they admit it or not. Beware of the term 'tax reform'. It is a vector concept and will therefore be progressive or regressive depending on which side of politics uses it.