Instead of taxing electric vehicles, heavy vehicles should pay more for the damage they cause | Richard Denniss

But this would upset powerful industries, so don’t hold your breath

The purpose of the tax system isn’t just to collect revenue, it’s to shape society in ways we see fit. It’s no accident that fresh food is excluded from the GST and it’s no accident that the tax on alcohol is higher than the tax on water. It’s also no accident that some of the biggest oil and gas companies in Australia pay virtually zero tax. We get the tax system our parliaments can agree on.

In turn, Australia’s tax system is shaped by the distribution of power within our politics and economy. We tax company profits at lower rates than we tax workers’ wages; we tax income from capital gains at half the rate we tax ordinary income; and we exclude private school fees from the GST but include public transport. We had a carbon tax and then we didn’t. Tax policy is the pointy end of power politics.

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from The Guardian https://ift.tt/3fx8RWh
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