Pauline Hanson. Picture: Steve Ferrier\/The West Australian.Picture: The West Australian <\/p>\n
Pauline Hansons plan for a flat 2 per cent tax would cost the Federal Budget more than $230 billion and aid imports at the expense of the local manufacturing sector. <\/p>\n
Analysis by the left-leaning Australia Institute shows it would be the most radical tax overhaul in Australias history. <\/p>\n
Senator Hanson has backed a two per cent tax on all income, including welfare payments, as well as abolition of the GST. <\/p>\n
One Nations policy statement commits the party to explore removing Federal taxation and direct and indirect taxes on employment. <\/p>\n
But the institutes analysis suggests such a major departure would punch a $232 billion hole in Federal finances in one year. <\/p>\n
A 2 per cent tax on business turnover, property and income would raise almost $147 billion. <\/p>\n
This years Federal Budget shows the Government will collect $379 billion in taxes. <\/p>\n
Institute executive director Ben Oquist said a simple flat tax would leave the Federal Budget in tatters. <\/p>\n
This amounts to a cut equivalent to all Commonwealth payments to the States, including $8 billion to WA, plus the aged pension, plus Medicare and all income support to the disabled just to name a few, Mr Oquist said. <\/p>\n
This would be the most radical taxation policy in Australian, probably OECD history. <\/p>\n
One Nation has argued its tax policies would drive a lift in economic growth that would make the country richer and generate extra tax revenues. But the institute analysis suggests the biggest winners would be high-income earners and overseas firms. <\/p>\n
A person earning more than $1 million would make a tax saving of almost $420,000. An international firm such as Shell would save $660 million. According to the institute, a turnover tax as suggested by One Nation would encourage large firms to produce goods and services in-house rather than outsource that work to small and medium-sized companies. <\/p>\n
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Analysis of Pauline Hanson's flat 2 per cent tax shows it would help overseas imports - The West Australian<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Pauline Hanson. Picture: Steve Ferrier\/The West Australian.Picture: The West Australian Pauline Hansons plan for a flat 2 per cent tax would cost the Federal Budget more than $230 billion and aid imports at the expense of the local manufacturing sector. Continue reading