Former Treasury Secretary, Dr Martin Parkinson’s, many warnings that Australians are facing inexorable rises in inefficient and inequitable income taxes through bracket creep have received backing from The Grattan Institute, who forecasts that the lion’s share of the projected narrowing of the Budget deficit – from $41 billion this financial year to $7bn by 2018-19 – stems from increases in income taxes. From The Australian:
Rapid rises in personal income tax, largely from bracket creep (where inflation increases taxpayers’ average income-tax rates over time), contributes $25bn, by far the largest share.
