Debit Tax vs GST

"Increased job opportunities through the introduction of a Debit Tax have been arrogantly dismissed by the Federal Treasurer in favour of a Goods and Services Tax," says Mr Graeme Campbell, Independent Member for Kalgoorlie, and Aus­tralia First Party Parliamentary Leader.

"It appears Treasurer Costello has no intention of giving the idea any consideration. He has simply dismissed the whole concept without the courtesy of saying he would at least give it to his Tax Consultative Task Force chairman, Senator Gibson, for his comments. He also appears to have dismissed the idea of a 2% tax being proposed by tax reform advocates. And, this despite his assurances last October that the community would have the opportu­nity for input into future federal government taxation policy."

The introduction of a Debit Tax could see a number of major benefits including in­come tax and other commonwealth taxes abolished; no tax on profits, capital gains or as­sets; and an end to tax avoidance and one basic Debit Tax for everyone.

Mr Campbell said "More im­portantly, businesses with no tax barriers will be able to employ more staff and workers, who will have more in their pay packets to take home. The small debit tax of 0.33% on all withdrawals will provide the Treasury with a continuous flow of income."

"Costello simply answered "No" when I asked him a question if he had instructed his task force not to entertain any consideration of the Debit Tax. Mind you, Costello has made fre­quent assertions that a wid­e-ranging tax debate with everything on the table was required by the Howard government."

The Treasurer's light and arrogant dismissal in Parliament when asked the question appears to only reinforce a growing dem­onstration "from his corre­spondence to me and his radio utterances that he knows little about tax."

"There is also the question that he may have misled Parliament on the question of the Debit Tax."

Mr Campbell said he had been provided with a Statutory Declaration which indicated Mr Costello had given instructions to the Task Force that no consid­eration was to be given to any Debit Tax submission.

"I think it is disgraceful that the Coalition purports to provide a public image of community discussion on future taxation policy, when it seems the final decision to run with a GST has already been made."

The advantages of a Debit Tax

All Commonwealth taxes are abolished.
One basic Debit Tax Rate for all.
No Tax on Savings or Investments.
No Tax on Profits, Capital Gains or Assets.
Deposits are not taxed.
No More Tax Deductions from Pay cheques.
No tax cheating or tax avoidance is possible.
No more imputation tax or rebate, such as deeming.
No more filing of tax forms for anybody.
No more provisional tax is required.
A Tax File Number system will no longer be required.
Modern EFT systems are used.
Increase in the value of the Australian Dollar.
A continuous flow of revenue to the Australian Federal Treasury.
No corporation or business will be required to lodge a statement of profit to the government.
There is only one tax collector, the programmed Bank computer.
Two columns exist in any bank. The Credit column which records Deposits, and the Debit column which records withdrawals.
It is when money is withdrawn that the Debit Tax becomes operational.

The Debit Tax System proposes that a tax of 0.03% be levied on the amount withdrawn from an account, and then instantly deposited into the coffers of the Aus­tralian National Treasury.

A Debit Tax of one-third of one percent, calculated on figures available from the Reserve Bank, would gener­ate an annual revenue in the order of $170 Billion. With current Budget requirements of $100 Billion, the surplus accrued through the Debit Tax would quickly dispose of the National Debt, and make us - within a few years - a wealthy country.

-------------------------------------------------------------------------------- From the September/October 1998 edition of National Focus (vol. 1, issue 4), p.1,12

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