PRIME MINISTER
E. O. E. -PROOF ONLY
TRANSCRIPT OF INTERVIEW ON AM 20 SEPTEMBER 1985
Warwick Beutler asks the Prime Minister first if, in line with
what he calls his ninth principle oftax reform, this package
has widespread support.
PM: Well, what we were talking about there was a package. Now
you would never have a situation where any package you brought
down it would be -the case that for every single element in the
package that you would have broad community support. You really
had to hav'e-in regard to the fundamentals of your approach,[
broad community support. And that is why Option C failed the test
of principle nine because quite clearly a broad based consumption
tax was a central element of that approach. And it was quite
clear-there wasn't broad community support for that. Now as far
as the capital gains tax in this package is concerned, it is much IF
different from the sort of capital gains that was talked about
and contemplated by many people. And it is our judgment that as
a part of the overall package it will be acceptable. K
BEUTLER: It still does not impress too many people. The initial
reactions aren't all that favourable. The National Party says,
for example, that it will depress
PM: The National Party
BEUTLER: Well, yes,
PM: Come on, the people who advocate flat tax. We are not
suggesting are we, that we take the National Party seriously.
The Liberal Party doesn't take the Naticnal Party seriously,
the National Farmers Federation doesn't take them seriously.
There is virtually no one in the country that takes them
seriously so don't ask me to take seriously an organisation
which is there is no one else in the country that takes them
seriously.
BEUTLER: W6ll, let's talk about the National Farmers Federation.
then they're not terribly pleased with the capital gains tax. They
say it will depress rural land values.
PM: They are wrong because what you have got to appreciate is
that the farmers were talking about a situation where existing
assets would be covered. They were talking before about the
disastrous impact of deeming at death. Now neither of those
situations apply. What people will understand, I believe, and
accept is that while this very modified tax was brought in in
terms of revenue gain, what we have done is to put in a capital gains tax
which by its very existence will mean that we have brought in an
important elemnent in stopping tax avoidance.
BEUTLER: Would you shed too many tears if the Democrats in the
Senate scuttled the capital gains tax proposal?
PM: I don't believe that the Democrats in the Senate would do that.
You are talking about an entirely hypothetical position indeed. I have
only had the opportunity to this point of reading the press release
by Don Chipp and I don't draw the conclusion from what he has said
that that's what they would do.