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West Australians pay 17% more tax
West Australians are the highest taxed people in the nation, paying 17 per cent more than the national average, the Chamber of Commerce and Industry of WA says.
A CCIWA report labels WA as the least competitive state in terms of tax and says that the state government's tax take has doubled to $5.7 billion in the past six years - equal to an extra $1,219 per person annually since 2001.
In a pre-budget submission, the CCIWA is requesting that payroll tax be cut by 0.5 per cent in the 2008-09 budget and stamp duty rates on property transactions be cut to 2001 levels.
The submission, ahead of the state budget in May, says the CCIWA is concerned with the government's financial strategy and complains that "rampant spending" and unsustainable wages growth are largely funded by "overburdened" taxpayers.
CCIWA chief economist John Nicolau said the requested reforms would be affordable given the government's surpluses.
"WA's current once-in-a-lifetime economic boom is creating many benefits, but also many challenges for businesses of all sizes," Mr Nicolau said.
"It is therefore vital the state government uses today's prosperity to lay a sound and responsible base for the future to ensure the economy remains strong for many years to come.
Mr Nicolau said since the current Labor state government came to power seven years ago, general expenditure had increased by 45 per cent or $4.7 billion.
Without restraint, the spending was tipped to blow out by a further $3.3 billion by 2010-11, he said.
WA opposition treasury spokesman Steve Thomas said the tax burden on West Australians was subsidising government incompetence.
"It is also a looming disaster for WA that the Labor government is blowing the boom," Dr Thomas said.
Treasurer Eric Ripper's office has been contacted for comment.
I knew there was a reason why I left WA....