Malcolm Turnbull, my hero!! What a guy!
<now I never thought I'd find myself saying THAT, but hey, these are strange times we live in!
):
Govt rejects MP's tax avoidance claims
Assistant Treasurer Mal Brough has hit out at millionaire MP Malcolm Turnbull's suggestion that some rich people use tax avoidance schemes to set their own tax rates.
Mr Turnbull, a Liberal Party backbencher, has called for "across the board" tax cuts and wants a crackdown on tax avoidance schemes used by some rich people to pay less tax.
Mr Turnbull says a crackdown would allow tax rates to be cut across the board.
He says currently the rich can effectively determine their own tax rate by engineering generous deductions in order to substantially reduce their income.
"There's a host of areas and I think the critical thing is to focus on broadening that tax base and then as you broaden it, you are then in a position to lower rates," Mr Turnbull said.
"The rates at the top are very high but equally at the lower end of income there is a big issue with people as they earn more money starting to pay tax, but also losing benefits," he said.
Mr Brough has rejected Mr Turnbull's suggestion.
"Have a look at the marginal tax rates and you have two sides of the argument," he said.
The Federal Opposition says the Government should listen to Mr Turnbull's concerns.
Labor's Wayne Swan says the Budget should address Mr Turnbull's concerns.
"What this country needs is some real reform that puts incentive into the system," he said.
The Government says tax cuts, beyond those already flagged, are unlikely.
Reforms supported
The Australian Chamber of Commerce and Industry (ACCI) says politicians need to stop focusing on whether there will be tax cuts in the next Budget and agree on a broad set of common principles that need to be addressed.
Chief executive Peter Hendy says he supports Mr Turnbull's calls for reform.
But Mr Hendy says there is also a need for more sweeping structural change.
"The big picture is that there's a number of critical pressure points on the Australian economy in the medium term," he said.
"There's an aging population, there's skills shortages and there's not enough business investment in research and development.
"So you need to look beyond what Malcolm was talking about I think, to the source of our problems, the big challenges in the year ahead."