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Haha yep, the deadweight loss would be smaller. :) From my experience in government policy, i completely get your politics trumping logic and efficiency quote!

The efficiency argument for taxation isn't generally about $$$ collected, but more about the incentive impact it has on the economy, output, growth, etc. All taxes are disincentives and distort behaviour (Ha @ UK's window tax back in the day!). However, the more efficient ones are those that...

I'd think they'd go for super before negative gearing/CGT changes. the obvious low hanging fruit and the big ? of this years budget. Negative gearing is a form of 'middle income' redistribution...your hitting way to many voters to go near it (and thats why they dont).

Hockeys people probably dont mind land tax...its relatively efficient at the end of the day, easy to impose, implement, etc. Some people at Treasury believe its a great way to generate revenue. From memory Andrew Leigh (ex Treasury, Labor rep) wrote a paper on its efficiency... Stamp duty...

Haha this is a pretty accurate summary of how the process works...

Yep, it'll come under the spotlight time and time again particularly while we're in a budget consolidation phase. Doesn't mean much in terms of policy outcome, apart from continuing (enriching?) the policy debate about it. It should be considered as part of any tax review, its a big tax...