There are positive aspects to Malcolm Turnbull's proposal to ramp up competitive federalism by returning some income taxing power to the states. Well, in theory anyway.

There also are overwhelming problems with it, problems so obvious and large that I can't recall any proposed tax change being so broadly and immediately panned. When Colin Barnett is the only Premier on side, your proposed federalism reform is in deep trouble.

The potential positives have been spelt out by colleague Peter Martin, apparently the only non-right-wing ideologue to favour the idea. (Competitive federalism via differing state income tax rates was on the "to do" list the Institute of Public Affairs provided for the Coalition government and was recommended by Tony Shepherd's Commission of Audit from whose crypt Malcolm Turnbull has dragged it for an airing.)

As argued in the wake of the commission, the real world problems with competitive income tax rates are massive. Those most in favour of the policy, those with most to gain from it, are those most interested in paying less tax – the wealthy tax dodgers.