The case for taxing Baby Boomers more and Millennials less

Australia’s tax system is “upside down” according to the economics editor at the Australian Financial Review.

John Kehoe said intergenerational equity was becoming an increasingly big problem for Australia.

He wants retirees to be taxed more and young workers taxed less.

“From my perspective, it’s all upside down,” Mr Kehoe said on 3AW Drive.

“We tax income very heavily in this country … just when people are trying to save, buy a home, or raise a family.

“And then you get these big windfalls and wealth gains later in life that basically go tax-free.

“We’ve got a smaller and smaller working-age population that’s going to have to support a larger and larger ageing population and it’s just not going to be sustainable over the long-term.”

Press PLAY below to hear him make the case

Picture: Getty iStock