Henry Review urged to avoid big bang tax reform
13 March 2009
Professor Graeme Cooper believes there's no silver bullet where tax is concerned, in reference to the Henry Review of Taxation.
Speaking on ABC TV's Lateline Business, Professor Cooper agreed change is necessary.
"If Dr Henry is prepared to come up with a collection of small, sensible, well-conceptualised changes, they can lead - they can accumulate to a great benefit," Professor Cooper said.
"Individually, they'll look rather unattractive. In combination, they could be really remarkable."
Professor Cooper added that one of the biggest mistakes of the last review of tax system, the Ralph committee in 1997, was that it recommended radical change.
"The tax value method was really the centrepiece of a lot of what they were recommending," he said.
"On deep examination it was found to be wanting in many ways. Not that it couldn't have worked. But it probably could only been made to work with about the same degree of difficulty as the system they were going to replace."
Contact: Greg Sherington
Phone: +61 2 9351 0202