Lowering tax can be an export industry

It amazes me that Hong Kong, a barren island with a half decent tax system, can out-perform resource rich Australia in its economy.

It amazes me that Singapore, another island state with no natural resources other than a fine harbour, has been so successful.

It amazes me that the Cayman Islands, a barren coral atoll in the Bahamas, has a huge banking industry with 100 Australian expatriates working there. Among its various customers seeking a tax haven it administrates no less than 5 accounts for the egregiously named Australia's Futures Fund, set up with money stolen by the Australian government from the taxpayer-owned Telstra and sold back to some of them and others to fund the unfunded Public Service Superannuation. These accounts were set up to minimise the tax paid by this fund. A son of a friend is there. This is first-hand information.

It amazes me that there are over 2 million Australians, educated here at huge expense, are living and working overseas to advance their lifestyle. My son and his ladyfriend have established their home in Ireland for the past 15 years after going through their tertiary education in Australia.

It amazes me that the Australian tax system is so inimical to encouraging people to work, that so few work to support so many. I analysed this in my book Your Future in Your Hands. The graphic 'The Big Picture' is now out of date as is clearly obvious from the population figures used (for 1995), but the pattern remains.

With a decent tax system, this country could be a continent sized tax haven. The only decent and fair-field-with-no-favours tax system is a simple spending tax at 2% of each exchange of ownership of goods, services, property and labour to replace 9 major profit-based and punitive taxes. Easily implemented and easily accommodated.