Three Ideas on Tax Reform

In the latest Progressive Essay, Andrew Leigh argues that those who advocate lowering top tax rates are out of step with the views of most Australians. Contrary to figures that are often reported, the income of the average Australian is merely $26,000 per year, which is near the bottom of the 30 percent tax bracket.

Leigh suggests simplifying our tax filing system by allowing most people the option of not filing a return. He also argues for reducing effective marginal tax rates at the bottom, where the rates are highest, and the problem of joblessness most acute.