One more pair of 100-word blurbs, theseÂ from Bob Gregory.
Should the Lowest Income Groups pay the Highest Marginal Employment Taxes?
Low income groups pay the highest effective marginal income tax rates – 50-70 per cent – upon accepting employment. For those with children, high marginal effective tax rates can extend to incomes of $60,000. Policy issues are complex. Need major tax inquiry into whether this is the best marginal effective income tax system. The best data for policy development and analysis in health, education, welfare and work are collected administratively and kept within government departments where they are not adequately analysed. Major inquiry needed to develop ways to link these unit record data and make them available for policy analysis (with privacy protection).
Social problems – lack of employment growth among the unskilled, the increase in disability pensioners, lack of economic opportunities for children from poor families, long term receipt of unemployment benefits for the disadvantaged and growing indigenous disadvantage – have become much larger post 1975. I had believed and hoped that economic growth would considerably alleviate these problems. After ten years of strong growth it is clear that economic growth is not enough because it has been biased towards skilled labour and away from the unskilled. The need to more vigorously explore micro policies directed towards the unskilled and disadvantaged is much greater than I had thought.Â Â
Also, ANU is hosting a pre-summit panel discussion next week, featuring a few of the invitees. Details below – all welcome.
THE 2020 SUMMIT: Panel Discussion
Professor Hilary Charlesworth
Dr Jane Golley
Professor Bob Gregory
Professor Ann McGrath
Professor Warwick McKibbin
Wednesday 16 April, 3:30pm
Seminar Room A, Coombs Building, Bldg 9, Fellows Road
Apologies for the excess of summitry-related postings lately, but it seems in the spirit of the event to open up the debates as much as possible.