Cash Flow Tax, Gas Bans & Big Government w/ John Humphreys - ep293

Show host Gene Tunny and Australian Taxpayers’ Alliance Chief Economist John Humphreys tackle hot topics in Australian economic policy: the case for a cash flow company tax, the politics and maths of a gas ban, why stamp duty drags the economy, the growing size of government and the cost of living crisis.  Please email Gene your thoughts on this episode via [email protected] and Greens’ Gas Ban (0:00)Government Spending and Adverse Effects on Economic Dynamism (8:32)Stamp Duty and Efficiency Cost (19:42)Inflation Data and Cost of Living Crisis (25:39)Productivity Commission's Company Tax Reform (28:55)Workers' Compensation and Tax Incidence (43:11)Tariffs and Taxation (54:52)TakeawaysCash Flow Tax Reform – The Productivity Commission proposes cutting company tax to 20% for most firms, adding a 5% cash flow tax, and keeping the system revenue neutral—aimed at boosting investment.Gas Ban Impact – John argues the NSW Greens’ proposal would delay global warming by only 10 hours by 2100, even under optimistic assumptions, yet could raise costs for consumers and businesses.Stamp Duty Inefficiency – Economic modelling by the Centre of Policy Studies (CoPS) shows stamp duty’s deadweight loss at 70–80 cents per $1 raised, far worse than GST or income tax.Government Spending Growth – The CIS’s Robert Carling claims over half of Australians now earn primary income from government sources, raising concerns about productivity and political incentives.Hidden Tax Burdens – Workers’ compensation costs, though nominally paid by employers, often reduce workers’ wages in the long run, John argues.Links relevant to the conversationATA livestream on 7 August:https://austaxpayers.substack.com/p/australia-considers-cashflow-taxJohn’s article on Greens’ gas ban:https://austaxpayers.substack.com/p/greens-propose-gas-banPC’s cash flow tax proposal:https://www.pc.gov.au/inquiries/current/resilient-economy/interimLeviathan on the Rampage: Government spending growth a threat to Australia’s economic futurehttps://www.cis.org.au/publication/leviathan-on-the-rampage-how-the-growth-of-government-is-draining-australias-economic-vitality/CoPS on stamp duty: Some taxes are inefficient at any level. Even modest reforms will helphttps://www.vu.edu.au/about-vu/news-events/news/some-taxes-are-inefficient-at-any-level-even-modest-reforms-will-helpLumo Coffee promotion10% of Lumo Coffee’s Seriously Healthy Organic Coffee.Website: https://www.lumocoffee.com/10EXPLOREDPromo code: 10EXPLORED