While many Australians are enjoying the theatre of the United States presidential primaries, the contest is revealing a vast difference between the philosophical approach to tax reform of the main Republican contenders and that of the Turnbull government.
Australia's Liberal and National political leaders are living in a parallel universe.
In both countries, which face an election in 2016, government spending, the budget deficit, national debt and low economic growth are big policy issues.
Yet only in the US, with a budget deficit set to reach $US544 billion ($768 billion) in 2016, is the size, influence and spending patterns of the federal government acknowledged on the political right as a problem.
Every Republican candidate is arguing that a significant reduction in the size of government, together with significant structural personal and corporate tax reform, is imperative to drive long-term economic growth.
Frontrunner Donald Trump is promising to cut the number of personal income tax brackets from seven to three, reduce the top personal rate from 39.6 per cent to 25 per cent and the corporate rate from 35 per cent to 15 per cent.
Texas Senator Ted Cruz will introduce a flat personal income tax rate of 10 per cent and replace the corporate tax with a business flat-rate tax of 16 per cent.
ABOLISH CAPITAL GAINS TAX
Florida Senator Marco Rubio will also reduce the number of personal income tax brackets to three, cut the corporate rate to 25 per cent and abolish capital gains tax.
Retired neurosurgeon Ben Carson wants to tax all income at a flat rate of 14.9 per cent and also abolish capital gains tax
Even the more centrist Jeb Bush, John Kasich and Chris Christie all promise to reduce the number of personal income tax brackets to three, levy a top rate of only 28 per cent and cut corporate tax to either 20 or 25 per cent.
All candidates are committed to slashing tax deductions, corporate welfare and "special interest loopholes" and are promoting the role the tax system plays in encouraging investment, innovation, productivity and employment.
But the tax reform and government spending debate in Australia is a lot more anaemic.
Despite domestic government spending stuck at global financial crisis levels, an alarming increase in government debt since 2008 and a budget surplus pushed further into the never-never, mainstream debate revolves around ideas to increase revenue.
HIGHER SUPERANNUATION TAXES
These include higher superannuation taxes, raising the GST or increasing the capital gains tax burden, either by levying it on the family home or curtailing the discount.
Increasing the Medicare levy, chasing multinationals for daring to base themselves in countries with a lower tax rate, or that oldest and laziest of ideas, ratcheting up taxes on cigarettes.
The Abbott/Turnbull government has already re-introduced the indexation of petrol excise, added a levy to the top personal tax rate, and has been toying with raising the GST.
Proposals under consideration appear to centre on the least politically damaging ways to increase revenue, with personal or company tax cuts intended to only partially compensate for tax increases elsewhere.
In fact, it is difficult to discern the motivation driving the economic policy of our Liberal and National politicians.
Do they have a genuine commitment to reduce the size of government?
LOW TAXES DESIRABLE END GOAL
Do they have a genuine belief that low taxes are as desirable an end goal as a cleaner environment or maintaining public order, or that government should be funded only to do what it must?
Or is tax reform just a phrase to give politicians cover for new programs like the National Disability Insurance Scheme or the back-from-the-dead Gonski package?
If the Turnbull government is truly interested in reform and in energising its voter base, it will seek inspiration from its Republican cousins, ignore public sector interests and promise to radically shrink the public sector, while flattening and lowering personal and business tax rates.
To quote one of the US candidates, "growth doesn't come from government, it comes from individuals and from enterprise".
With all of the US candidates pledging to cut corporate and private income tax rates by at least 30 per cent, the Republican Party clearly understands the link between taxes and growth.
Does the Coalition?
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