The Times Australia
The Times World News

.
The Times Real Estate

.

Imagine if each of us could direct where our taxes were spent. Meet TaxTrack

  • Written by Jean-Paul Gagnon, Senior lecturer in democracy studies, University of Canberra
Imagine if each of us could direct where our taxes were spent. Meet TaxTrack

Ahead of this week’s budget, Treasurer Jim Chalmers says he wants Australians to prepare for a serious conversation[1] about how to pay for the services we need.

We’ve developed a proposal to make that conversation more real.

Australians pay a lot of tax (although less[2] than in some other countries) and we pay it in a lot of ways: through income tax, the goods and services tax, excise duties, stamp duties, council rates, and capital gains tax.

Most of us accept tax, if grudgingly. But many aren’t happy[3] with how it is spent.

Enter TaxTrack[4] – our hypothetical proposal for democratising taxation, details of which are to be published in the Australasian Parliamentary Review[5].

Our idea is that Australians who want a greater say in where their taxes go could be given a TaxTrack number, which would trace those dollars and direct them only to places they wanted them to go.

An app could display the invoices a user’s taxes had paid. Shutterstock

If they wanted, they could view the invoices their contributions had helped pay, and they could specify which invoices their contributions should not pay – perhaps by prohibiting the spending of their money on things such as military ammunition, or specifying that a certain proportion was directed to healthcare.

Governments would have to work with those instructions, cutting spending in areas that lacked support and boosting it in areas for which there was overwhelming support.

It would give taxpayers a lot of power, and a good deal more engagement.

The idea borrows from previous experiments with “participatory budgeting”, including one in the Brazilian city of Porto Alegre[6] in the 1980s.

But whereas these experiments gathered citizens together to discuss the outputs of budgets (as Chalmers is proposing) ours would empower citizens at the input stage, using technology that has only recently become available.

We foresee problems. One is that necessary but unpopular activities might not be funded. For instance, administration, and tax collection itself, tend to be unpopular and could face a squeeze.

Taxpayers might also decide to look after themselves. The young might strip pensions from the old. The old might cut funding that goes to the young.

Public forums[7] and deliberative citizens’ panels[8] would likely be needed to work through the contradictions.

But the forums, and the agency the system would give to citizens, would connect them more strongly to government and help combat the political disenchantment[9] seen in the United States and elsewhere.

At this stage it’s only an idea, albeit one that has become technologically feasible. It mightn’t yet be politically feasible. But things are moving in that direction.

Read more: Economic democracy: how handing power back will fix our broken system[10]

Given Chalmers’ exhortation to the Australian people to have a “serious conversation” about how to fund public services, our proposal (or something like it) would offer people a practical way to do it.

Jean-Baptiste Colbert[11], finance minister to Louis XIV, famously declared the art of taxation “consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing”.

It might be time for the goose to decide how its feathers are used.

Read more: Australia needs an honest conversation about tax and budgets – and Jim Chalmers is ready to talk[12]

References

  1. ^ serious conversation (ministers.treasury.gov.au)
  2. ^ less (www.oecd.org)
  3. ^ aren’t happy (poll.lowyinstitute.org)
  4. ^ TaxTrack (www.researchgate.net)
  5. ^ Australasian Parliamentary Review (www.aspg.org.au)
  6. ^ Porto Alegre (journals.sagepub.com)
  7. ^ Public forums (www.participatorybudgeting.org)
  8. ^ deliberative citizens’ panels (www.futuregenerations.be)
  9. ^ political disenchantment (www.cato.org)
  10. ^ Economic democracy: how handing power back will fix our broken system (theconversation.com)
  11. ^ Jean-Baptiste Colbert (www.economist.com)
  12. ^ Australia needs an honest conversation about tax and budgets – and Jim Chalmers is ready to talk (theconversation.com)

Read more https://theconversation.com/imagine-if-each-of-us-could-direct-where-our-taxes-were-spent-meet-taxtrack-192576

The Times Features

Why Regional Small Businesses in Bendigo Deserve Better Access to Finance in 2025

In the heart of regional Victoria, Bendigo has long stood as a beacon of innovation, resilience and community spirit. As we step further into 2025, the importance of nurturing sm...

Is It Time for a Deep Cleaning? Signs You Shouldn’t Ignore

Most people know they should visit the dentist for a regular check-up and cleaning every six months. But sometimes, a standard cleaning isn’t enough. When plaque and tartar build...

The Hidden Meaning Behind Popular Engagement Ring Cuts

When it comes to engagement rings, the cut of the diamond is not just about aesthetics. Each shape carries its own symbolism and significance, making it an important decision for...

Annual Health Exams in the Office: How They Can Reduce Sick Days and Healthcare Costs

Regular health check-ups, especially annual health exams in the office, can significantly impact the overall well-being of your workforce. A proactive approach to employee health...

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Times Magazine

The Essential Guide to Transforming Office Spaces for Maximum Efficiency

Why Office Fitouts MatterA well-designed office can make all the difference in productivity, employee satisfaction, and client impressions. Businesses of all sizes are investing in updated office spaces to create environments that foster collaborat...

The A/B Testing Revolution: How AI Optimized Landing Pages Without Human Input

A/B testing was always integral to the web-based marketing world. Was there a button that converted better? Marketing could pit one against the other and see which option worked better. This was always through human observation, and over time, as d...

Using Countdown Timers in Email: Do They Really Increase Conversions?

In a world that's always on, where marketers are attempting to entice a subscriber and get them to convert on the same screen with one email, the power of urgency is sometimes the essential element needed. One of the most popular ways to create urg...

Types of Software Consultants

In today's technology-driven world, businesses often seek the expertise of software consultants to navigate complex software needs. There are several types of software consultants, including solution architects, project managers, and user experienc...

CWU Assistive Tech Hub is Changing Lives: Win a Free Rollator Walker This Easter!

🌟 Mobility. Independence. Community. All in One. This Easter, the CWU Assistive Tech Hub is pleased to support the Banyule community by giving away a rollator walker. The giveaway will take place during the Macleod Village Easter Egg Hunt & Ma...

"Eternal Nurture" by Cara Barilla: A Timeless Collection of Wisdom and Healing

Renowned Sydney-born author and educator Cara Barilla has released her latest book, Eternal Nurture, a profound collection of inspirational quotes designed to support mindfulness, emotional healing, and personal growth. With a deep commitment to ...

LayBy Shopping