There’s merit in giving the states income tax

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By Leith van Onselen

Prime Minister Malcolm Turnbull’s plan to allow the states to levy their own income taxes so that they can pay for their own services, such as hospitals and education, has received a mixed response from both the commentariat and the states.

One supporter of the proposal is Fairfax’s Peter Martin, who argues that “we can’t vote for better schools and hospitals in state elections and lowers taxes in federal elections and expect to get both”:

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.