02 May The article states that “The Australian Taxpayers’ Alliance said the
The article states that “The Australian Taxpayers’ Alliance said the Turnbull governments online shopping tax punishes Aussie consumers and denies shoppers the same choice available to billions of shoppers worldwide.” Do you agree with the above statement ? Make sure that you justify your answer with the relevant economic theories. [8 marks]
3. Explain the rationale behind the creation of an on-line shopping platform. Does the on-line shopping platform make a market more efficient? [ 8 marks]
4. Do you agree that such an on-line shopping tax make Australian retailers more efficient? How does this on-line shopping tax affect the total surplus of an economy? [8 marks]
5. “If multinationals aren’t forced to pay their fair share of tax, they will have a competitive advantage over retailers here in Australia, on our own main streets and in our shopping centres.” What will be the short-run and long-run consequences of such a tax policy on Australian domestic retailers. [8 marks]
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