The proposals are approximately revenue neutral in aggregate and minimize redistribution relative to the current economic incidence. The proposed reforms include: remove current exemptions to achieve comprehensive payroll and land tax bases, and apply flat rates with individual state rights to choose the rate and to vary it over time; remove the transaction taxes on conveyance and stamp duties on insurance; replace the current suite of Commonwealth and state taxes on the use of motor vehicles with a user charge and special indirect taxes to internalize the external costs of pollution and congestion; and, focus special taxes on gambling to collect a share of the economic rent generated by government restrictions on supply
