Tax, Inequality and Challenges for the Future

Abstract

As in most countries in the developed world, inequality in Australia has been growing for more than three decades.² In part this is due to systemic issues associated with the relative power of capital and labour and the decline in the share of national factor income going to labour.³ In part it has to do with deliberate government policy. In a nutshell, growing inequality undermines the meritocracy on which democracy depends. It creates a sense of unfairness and disillusionment with society, both politically and economically, concentrating more wealth and power in the hands of already powerful and wealthy people. It