Sunday, January 30, 2011

Tax isn't the problem: Equity and Distribution is.

The mere word TAX can send some into a ranting fit but we cant forget the daily benefits that tax brings us. Free education, income support, health care, water and waste services, roads just to name a few.

Car tax isn't an altogether appalling idea but how should the money raised be spent?  Regional people need roads that are safe, safety programs for young drivers and more importantly we need money directed to a public transport system that will ensure that rising fuel costs do not further isolate us.

Rising fuel costs are not a thing of the past and as 'peak oil' comes into play we are in for some severe oil shocks. On average regional people pay more at the bowser and often private car travel is the only transport option available so there needs to be action to address regional inequity.

Talking to unemployed young people on the South Coast they cant afford to buy a car let alone fuel one and the transport options are so poor that getting to a place of higher education such as TAFE or University is impossible unless you can hitch a ride. At least with pensioners the option for community transport is available-  this service has seen a real rise in demand. When Shoalhaven City Council surveyed the needs of the city transport was the most mentioned service gap.

Simply if you can afford a large vehicle such as a 4x4 you should be able to afford more tax. 4x4s in particular use more fuel, put more pressure on ageing and failing roads and don't necessarily offer more safety. Most of the 4x4s I see are in the morning driven by mums dropping children at school and would rarely make it off road. Our family have two of these vehicles in our driveway- mine spends 80% of its time driving on a highway.

So if all the funds of a car tax were spent on improving Sydney's public transport system that would compound the distribution of wealth problems faced by regional dwellers. It could have a net benefit effect for the state, moving the most people in the most efficient manner- improving workplace productivity and take pressure of the roads- but tax needs to be about equity and we need to stop complaining about it and engage in constructive criticism of its distribution.
The axe the tax campaign is a typical reactionary position that we will see more of as the State Election campaign ramps up over the coming weeks, trying to win electoral favour without analysis of the deeper problem.


4x4s at work on the swings and roundabouts of tax, pay more, claim as a business expense- contribute less

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