Just some quick thoughts on the Commission on Taxation and Stamp Duty.

Stamp Duty created an Unbalanced Tax System

One of the main thrusts of the commission on taxation is that its purpose was not to increase the tax burden, but rather to distribute it more fairly.

However at the time the commission was put together, Stamp Duty produced a huge portion of the tax take in this country.  At this stage it produces minimal return.  In remaining Revenue neutral, the commission has proposed reducing or removing stamp duty in favour of other taxes including carbon, property and water.  It was proposed that this would be more equitable also.

But not any more.  Stamp duty is gone and there is a great big hole in the budget.  This will have to be filled from elsewhere, be it water, property, carbon, CGT, Income tax or corporation tax.

All we can hope for when the government take into account the commissions findings in the next budget, is that they use it to help create a more equitable tax system. But lets lose the notion that it will be used to produce a revenue neutral budget .