Our tax rate currently only stands at 20%, I see no pressing need to cut it, especially if it means cutting welfare, health and education spending. But I'm not fond of the 3rd option either, we already spend a third of the budget on education.
That leaves the 2nd if we're not going to dismiss, and I'm not sure what to say, since while our nation's income equality is only half the world average, I have no sense of scale for the units used.