Sinclair Davidson

Adjunct Fellow

The South Australian Major Bank Levy: Arbitrary, Unjustified, and Harmful for South Australia And The Rest Of The Country
7 July 2017

The South Australian Major Bank Levy: Arbitrary, Unjustified, and Harmful for South Australia And The Rest Of The Country

In the South Australian state budget 2017-18, South Australian Treasurer Tom Koutsantonis announced that the state government intended to introduce a South Australian Major Bank Levy, one of two revenue measures “to help us meet the cost of our significant support for driving economic growth and creating more jobs”.1 Treasurer Koutsantonis made clear that this levy was explicitly modelled on
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How Howard’s Great GST Bargain Got Trashed By Canberra
28 June 2017

How Howard’s Great GST Bargain Got Trashed By Canberra

Policy elites take the view that former prime minister John Howard did a deal with Meg Lees and the Democrats to introduce the GST. In a trivial procedural sense that is accurate. More importantly, however, Howard did a deal with the Australian people that in return for repealing a huge bunch of nuisance taxes, the Commonwealth could levy a broad-based
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Central Bank Has A Strange Idea Of How To Strengthen The Economy
24 June 2017

Central Bank Has A Strange Idea Of How To Strengthen The Economy

Who wouldn’t like to get a huge pay increase? According to RBA governor Philip Lowe we should all be nagging our bosses for a greater share of the national economic pie. If we all got a huge pay increase that “would be a good thing”. Mind you – keeping our jobs would be a very good thing. Therein lies the
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IPA: SA Bank Levy Economic Vandalism
23 June 2017

IPA: SA Bank Levy Economic Vandalism

“A South Australian Bank levy is an outrageous act of economic vandalism,” said RMIT Professor Sinclair Davidson, Senior Fellow at free market think tank the Institute of Public Affairs. “This is precisely the sort of state-based nuisance tax that the GST was brought in to eliminate. It is very disappointing that politicians are reneging on the tax deal that the
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Is That Tax Policy Or Slapstick Comedy?
23 June 2017

Is That Tax Policy Or Slapstick Comedy?

The relationship between taxpayers and government should be symbiotic – to the mutual benefit of each party. This is certainly what Adam Smith had in mind when he wrote that everyone should contribute to the support of government in proportion to the revenue they enjoy under the protection of the state. He also wrote that paying tax was a badge
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High Tax: The Pillar Of What Civilisation?
16 June 2017

High Tax: The Pillar Of What Civilisation?

“Progressive” think tank Per Capita recently released the results of their annual tax survey. It turns out that 51.5 per cent of Australians think they pay about the right amount of tax. 39.6 per cent reckon they pay too much and a mere 1.9 per cent think they pay too little tax. It turns out that both young and old
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Reality Is ‘The Rich’ Do Pay Their Fair Share
4 May 2017

Reality Is ‘The Rich’ Do Pay Their Fair Share

It is pre-budget silly season again. You know, the time of year when we get to hear all of the good -reasons why government should spend more money. It is also when we get to hear why government should tax more. To hear some people tell it, the power of taxation is quite astonishing – it can solve any and
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Placing GST On Online Purchases Is A Tax Increase Which Will Place Australian Consumers At Risk
21 April 2017

Placing GST On Online Purchases Is A Tax Increase Which Will Place Australian Consumers At Risk

“The government’s plan to impose GST on goods purchased from foreign online retailers is a tax increase and should be rejected by the parliament”, said Dr Chris Berg. Dr Berg and Professor Sinclair Davidson, RMIT economists and senior fellows at the free market think tank the Institute of Public Affairs, will appear this morning before the Senate Economics Legislation Committee
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GST Change Is A Plain And Simple Tariff, Scott Morrison
11 April 2017

GST Change Is A Plain And Simple Tariff, Scott Morrison

The Turnbull government’s proposal to eliminate the $1000 threshold before the GST is levied on imported goods is not a tax integrity measure. It is a tariff, and one that will have serious repercussions that the government does not seem to have considered seriously. The end of the low-value threshold was first flagged by the government in December 2014. It
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Diverted Profits Tax Will Go Nowhere
28 March 2017

Diverted Profits Tax Will Go Nowhere

The Turnbull government’s diverted profit tax has passed the Parliament. Introduced in response to the moral panic that, somewhere, somehow multinational corporations don’t pay a fair share of taxation, this new tax is at odds with the government’s professed belief in lowering the corporate tax burdens, is at odds with our international competitors, and (as we learnt just this month),
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