tax question......help please, page-37

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    I agree having a top marginal rate equal to the corporate rate would reduce a lot of structuring to minimise tax, there has already been this from the recent rises in the top marginal rate.

    Just as allowing income splitting between spouses would also reduce the attrativeness of various tax schemes (legal or illegal). With income splitting if the Husaband earned $100K and the wife earned nil they would be taxed the same as a couple who each earnt $50K each. There is legitiamte justification for this as the $100K in both situations goes towards supporting the same people. This would be a far simpler arrangement than the currect mess of personal exertion legislation and family tax benefit payments.

    Whether a government would ever take the initiative in this area - I would not hold my breath

 
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