Tax system means young Australians will pay COVID-19 bill

Australia's tax system will mean young people will be left to pay the bill for the Government's economic response to the COVID-19 crisis, a leading economist warns. Professor Robert Breunig, who leads the Tax and Transfer Policy Institute at The Australian National University (ANU), says the epidemic is increasing inter-generational inequality. "This inequality will be exacerbated by our tax system settings," Professor Breunig said. "The massive Government spend of at least $330 billion to counter the economic shock of COVID-19 will have to be paid for by young people. The design of Australia' tax system has pre-determined this outcome. "Our heavy reliance on direct taxation-activities by corporations or individuals-means that the tax burden to repay the debt will fall very heavily on the future incomes of young people, which will now be lower as a consequence of the pandemic. "In addition, governments' economic responses to crises like COVID-19 favour protecting people's assets and their value.