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Personal Income Taxation


John Freebairn, Department of Economics, The University of Melbourne, VIC 3010, Australia. Email:


The efficiency, equity and simplicity effects of reform proposals for lower taxation of capital income relative to labour income, for a comprehensive labour income tax base, for a more neutral system of taxation of different forms of capital income, and for a simpler and more transparent personal income tax rate schedule are explained and evaluated. Recommendations of Australia’s Future Tax System provide many positive ideas, but there are additional worthy options to consider.