It seems all the forces are split
on Tax – Howard and Costello, Vaile and Joyce and union leaders Bill
Shorten and Greg Combet. Strange duelling partners, strange bedfellows.

Costello’s
stand on the issue is surprising. His comment that only 3% of taxpayers
will pay the top marginal rate once the budget changes are in place is
fleshed out by the editorial in The Australian.

“…
that 3 per cent is about 333,000 taxpayers who will be fleeced of
almost half of every additional dollar they earn. And the 3 per cent
figure is deceptive, being in relation to all taxpayers, including
those such as self-funded retirees and part-timers who pay very little
tax. Limiting the equation to the earners who generate 85 per cent of
the total tax take,nearly one in 10 of this group will still find themselves in the top threshold, come July.”

The Oz
editorial is the kind of intelligent discussion that is wanted on the
tax issue, and what Malcolm Turnbull is obviously encouraging with his
numerous tax models. Costello’s dismissal of “3% of taxpayers” might
hurt him, especially considering that a much greater percentage of
taxpayers are aspiring to earn over 125,000 p.a., and many are keen for
a simpler tax system. Henry would settle for one that he understood.

As we’ve said before, bring on the tax debate (follows here).

And
we’ve been surveying who Australians think will be Prime Minister in six
years time. Lindsay Tanner was the early leader (when the IR debate was
at its hottest) but Costello is currently out in front (from Tanner,
Gillard and Howard). However, we suspect the tax issue might swing the
vote again. Vote here…