Whose reform? Which equality?
by John Nevile
Zadok Perspectives Issue No. 61
Winter 1998

Should Undesirable activities be taxed?

One reason why the poor pay a significant amount of indirect tax is that tobacco products are an important source of revenue. However, one can say that these taxes are consistent with a general attitude of governments in Australia to discourage smoking. Compare this with taxes on gambling. These are an increasingly important source of revenue for State governments and now provide about 10 per cent of all state government tax revenue.

The rate of growth of gambling tax revenue, which is about 10 per cent a year over the last decade, is a direct result of measures taken by State governments which have not only increased taxable gambling, but as far as is known, have increased gambling in general. While gambling in itself is not necessarily immoral, there is a lot of evidence that gambling is a real yoke, to use Isaiah's language, and it becomes a yoke not only for gamblers themselves, but also for their families. In recent years, State government policy with respect to gambling appears to increase the likelihood of people being subject to this yoke, rather than trying to break the yoke.

To: The overall level of taxation

John Nevile John Nevile is Emeritus Professor, School of Economics, University of New South Wales.