Fed: Economist calls for tax deductions, returns to be scrapped

AAP General News (Australia)
04-06-2006
Fed: Economist calls for tax deductions, returns to be scrapped

A leading economist wants annual tax returns scrapped as part of an ambitious overhaul
of the tax system.

As Treasurer PETER COSTELLO continues to drop hints about tax cuts in next month's
budget .. Access Economics co-founder GEOFF CARMODY urged him to do more than tinker around
the edges.

Mr CARMODY .. a governor of the Australian Tax Research Foundation .. also wants an
increase in the tax-free threshold .. a rise in the Medicare levy .. and a cut in the
top rate of tax.

The changes could be at least partially paid for by scrapping work-related tax deductions
.. which would save enough money to cut the top tax rate from 47 cents in the dollar to
39 cents.

It would also mean most Australians would not have to lodge a tax return.

Mr COSTELLO is widely expected to announce more tax cuts in the May 9 budget .. on
the back of a forecast 11-point-five billion dollar surplus.

AAP RTV mfh/so/wz/crh

KEYWORD: TAX (CANBERRA)

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