Originally published in ABC The Drum on April 30, 2009

There are strong equity and efficiency arguments for taxing all income from capital at the same rate; the current concessions are wrong in principle and regressive in practice. The focus should be on why the wealthy enjoy the unique privilege of having a sizeable part of their real income taxed at half the normal rate. Closing this loophole would allow the revenue thus gained to be used for meaningful tax reform that shares the burden more appropriately.

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