That pesky section 96

by

Treasurer has stick to keep states in line
David Uren 23 December 2010 AFR

Leading state tax expert Neil Warren said the commonwealth simply had to repeat the strategy it had used to seize income-taxing powers from the states in 1942, when it resolved to reduce grants to the states by one dollar for every dollar of income tax they raised.
“The states challenged that in the High Court in 1946 and lost. Section 96 of the Constitution says the commonwealth can do whatever it likes with its grants to the states at its discretion and there is nothing the states can do about it,” Professor Warren said.

[War is the health of the commonwealth!]

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: