Henry inquiry into taxation and the report recommendation Essay - 1

Henry inquiry into taxation and the report recommendation - Essay Example Other areas of possible taxation concern so-called â€Å"social sins† such as tobacco or alcohol, environmental charges etc (Thompson et al, 2010). In other words, destroying human practices should be taxed. The Australian government does not accept the Report to the fullest extent. It claims that many points of a new taxation project should be reviewed otherwise â€Å"it will not implement †¦ at any stage† (Thompson et al, 2010). The government agrees upon some recommendations of Henry Report, but introduces its own corrections. For example, to reduce company tax from 30 to 29 per cent, but not to 25 per cent, as it is suggested in Henry Report. From this point of view, it is possible to claim that Labor Party has suggested more radical measures to be taken by the government in the sphere of taxation and the government suggests more consequential introduction of taxation reform. The most challenging recommendation of Henry Report is the RSPT or tax on resources. Currently, as it is suggested by the Report, there is a need to suggest a more effective means of raising revenue. Profits above normal return on the capital invested will be introduced in July 2012. Still, the government does not seem to acclaim this recommendation as it does not seem doubtlessly relevant to them. In accordance with Henry Report, â€Å"the benefits of including them [some non-renewables] under the RSPT are unlikely to outweigh the costs (compliance and administration)† (Henry Taxation Review, 2011). Henry Report is an innovative vision on Australian taxation appealing for swift and radical changes for Australia. Some points were approved by the Australian government with some corrections. Basically, there are beneficial social, economical and environmental implications in this taxation reform. On the one hand, Labor Party is on the right innovative way of Australian taxation system change and makes an attempt to increase benefits for the