NO.096

LABOR’S LATHAM ON WEALTH TAXES

Mr Latham has proposed death duties as part of his Progressive Expenditure

Tax (PET).

In 1998, Mr Latham declared that “If the GST is ever introduced,

such an unfair, discriminatory and job-destroying tax will need to be

repealed.” He said that “It is not as if the GST is like some

scrambled egg which can never be unscrambled. …Just as the GST can

be legislated in, it can be legislated out. The Progressive Expenditure

Tax gives Labor it’s best chance of replacing the GST with a fairer and

more practical tax.” (Hansard, 9/12/98).

Mr Latham has reiterated his support for the PET Tax in the media, for

example Channel 10, Meet the Press, 11/6/00, and his book Civilising

Global Capital (p133).

Mr Latham’s book Civilising Global Capital describes how his PET

Tax will tax inheritances (p348). His preferred model states that “an

inheritance could be treated as income and taxed in the same way as other

income.” The only exemptions from these inheritance taxes would

be if the inheritance was not sold off or if the money obtained was “appropriately”

reinvested.

Mr Latham’s preferred model proposes a marginal tax rate of 400% (That’s

right, 400%!) on taxable expenditures of between $40,000 and $50,000

(p346).

Australians deserve to know more details about Mr Latham’s death duties

and PET Tax before the election, and not be shocked to learn his kooky

agenda afterwards.

MELBOURNE

12 November 2003

Contact: David Alexander

02 6277 7340