The progressive case for decentralised taxation

Our own maltreatment of asylum seekers is not just due to a paranoid nationhood combined and exploited by malicious and manipulative politicians (although these are factors), but also due to a centralised government desiring greater control in an era of rapid change. Due to modern instruments like the internet where the state's sovereignty is undercut and questioned; the weak and desperate become easy targets to control. It's the schoolyard bully psychology of power acquisition.

It would be far more difficult for the Federal Government to act in this way if its income flowed up from the states. Where the hurdles involved to utilise the military would be greater, the ability to manipulate paranoia less, and the outsourcing of responsibility would require the acquiescence of multiple jurisdictions.

Centralised government is ripe to be abused not only with the use of violence, but by cultural tribalists as well. Witness how conservatives immediately seized upon Labor's national curriculum and used it for their own cultural purposes. Education is especially one area where the competition between states should be essential.

Historically, national curriculum has had the agenda of building cohesive society out of diverse regions. However, Australia has a reasonably homogenous and socially cohesive society. Despite occasional hiccups, Australians respect the common humanity of those who reside here (just not those seeking asylum here), and the idea that we need to embrace further institutions to "bind" us together is utterly false. It is an attempt to impose an unnecessary and offensive conformity.

In the 21st Century knowledge should be our primary educational objective and this requires curriculum that can constantly be improved. Competition between the states is the mechanism that will drive these upgrades. A national curriculum will be a stagnant curriculum.

The term "competition" doesn't sit well with progressive-minded people. It is seen as pitting humans against each other. But this interpretation is one-dimensional. Competition is actually the encounter, exchange and improvement of ideas; the process that allows knowledge to accumulate, intersect and advance.

This is why a concept such as decentralised, competitive federalism should be a progressive one. It allows smaller states, where the risk is less substantial, to experiment with policy. Larger states can then use the research gathered to implement tested ideas.

Government itself is a slow lumbering behemoth, and a centralised government even more so. If you are after change, decentralisation is the key to getting the ball rolling.

Decentralisation will allow states like Victoria that are more socially liberal to create policy that wouldn't fly in Queensland. A centralised government having to create a one-size fits all policy that has to account for both Collingwood and Longreach is limited in its effectiveness, and limited in its response to the desires of the citizens of each region.

This would also give citizens the opportunity to vote with their feet and move to regions of the country whose values they align with. With the current restrictions on global human movement, New Zealand is the only option for those bar the highly skilled.

The one negative effect of returning income to the states would be the economic consequences for Canberra. As a one industry town, Canberra is addicted to the gear. Its withdrawal symptoms would be great and some kind of economic methadone program would need to be implemented. There's a major critique of purpose built capitals here, but it is an article for another time.

In our modern political discourse we tend to play the man and not the ball. Warriors like Nick Cater advocate ideas like returning income tax to the states because dressing oneself up in (some) of the ideas classical liberalism is the present culture of conservatism. Outcomes are not on his agenda, increasing his stature within his tribe is. The temptation to do the same by simply reacting in a binary fashion and completely dismissing the idea needs to be resisted.

If government is your thing, and especially if you are disgruntled with the current federal government, then returning income tax to the states and bringing governance closer and more responsive to the people should be high on your agenda.