Fed: Tax reform architect calls for lower rates

AAP General News (Australia)
08-01-2001
Fed: Tax reform architect calls for lower rates

SYDNEY, Aug 1 AAP - The architect of the federal government's tax reform package has
reportedly branded the top personal tax rate as outrageously high and called for it to
be slashed.

David Vos, chairman of the government's consultative committee on tax reform, said
the high personal income tax rate was forcing the rich into tax minimisation schemes.

He argued the top marginal income tax rate should be slashed from 47 per cent to 30
per cent to help eliminate the incentives for tax minimisation schemes, the Daily Telegraph
reported today.

Mr Vos said Australia relied too heavily on income tax compared to other nations.

The top marginal rate was outrageous, he said.

"If high income people were paying 30 per cent, would they waste their time planning
to minimise tax," he is quoted as saying.

"They are trying to legitimately reduce their tax liability because at near 50 cents
in the dollar, it is worthwhile to do so."

AAP sal/was

KEYWORD: TAX VOS

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