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Archbishop Peter Jensen's Christmas Message 2011 on the centrality of Jesus to human history
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For most of us, the thought of two days talking about tax is sleep-inducing.
Two hundred delegates met in Canberra recently to discuss tax reform, fulfilling the Government’s commitment to Independent Rob Oakeshott MP for a public national discussion. Even among the battle-hardened of the debate, I am sure there were a few eye-glazing moments.
Prize for the most stoic performance must surely belong to retiring Treasury Secretary Ken Henry. He is still waiting patiently for the Government to respond to the substance of his Department’s far-reaching tax report, known as the Henry Review, released in 2010.
At least the forum offered an opportunity for the Henry Review to be discussed in a calm environment, away from the political point-scoring of parliament.
The most annoying element of the recent tax forum was the parade of special interests staking their ground for individual pleading. It is precisely this kind of sectoral lobbying which has resulted in the labyrinth-like system that we have at present.
In addition, the lack of political nous on the part of some commentators never ceases to amaze. ‘Let’s increase the tax base with a GST on food’ wailed the Australian Financial Review. The lens of market-driven economics doesn’t always focus on the needs of the disadvantaged.
But perhaps the most glaring gap in the drive to restructure and reduce taxes was the absence of proper debate on how to fund the growing burden of health and aged care into the future.
We all want the best health care, access to the latest medical technologies and medicines, and top-class aged care. Australians look at the US health system with horror: we want health care accessible to all, regardless of income or place in society. As the population ages and lives longer, we will want this into our 80s and even 90s.
Someone will have to pay for it. Sounds like an argument for a modest increase in the Medicare levy at the very least.
This longitudinal perspective was also highlighted in the Henry Review but the enormity of the challenge seems to have by-passed the Tax Forum. Rather than just politically expedient talk about reducing taxes more quickly, let’s see a debate which looks honestly at how to fund these major challenges. It is not about delivering tax cuts but rather ensuring the tax base can cover the costs of maintaining one of the best and most accessible health and care systems in the world.

