Economics Explored

A Pro-Growth Tax Reform Agenda for Australia


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What would tax reform look like if the goal were higher wages and stronger long-term growth — rather than more revenue? In this episode, Gene Tunny and John Humphreys examine capital gains tax, bracket creep, and income tax reform through the lens of productivity and living standards. While the discussion focuses on Australia, the principles apply everywhere. How should governments tax capital versus labour? Should tax brackets be indexed to inflation? And how can tax systems encourage saving, investment, and innovation? This episode explores the economic ideas behind a genuinely pro-growth tax reform agenda.

Gene would love to hear your thoughts on this episode. You can email him via [email protected]

What You’ll Learn
  1. Why productivity growth—not redistribution—is central to rising real wages and living standards.
  2. How capital gains tax works, and why inflation and the time value of money complicate its design.
  3. Why economists worry that taxing capital income can discourage investment.
  4. How bracket creep quietly increases tax burdens even when real wages aren’t rising.
  5. What a pro-growth tax reform agenda looks like.
  6. Timestamps

    Introduction to the Podcast and Episode Theme (0:00)

    Discussion on Productivity and Tax Reform (2:17)

    Capital Gains Tax Discussion (7:22)

    Proposed Tax Reforms and Economic Benefits (19:56)

    Indexing Tax Brackets to Eliminate Bracket Creep (45:41)

    Conclusion and Final Thoughts (49:03)

    Links relevant to the conversation

    The Australian Taxpayers’ Alliance livestreams that this episode borrows from…

    Bold tax cut proposal for a new opposition || #32:

    https://www.youtube.com/live/HYsNOmJ1tKc?si=ZCqtX2f5FWmxDo0C

    Taxes are going up || #31 

    https://www.youtube.com/live/UkQWVCo1Qko?si=Cyp-SBtjdYI3nBRp

    Related ATA newsletter articles:

    https://austaxpayers.substack.com/p/bold-tax-proposal-for-a-new-opposition

    https://austaxpayers.substack.com/p/tax-hikes-on-alcohol-and-petrol

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