Australian Politics Forum - GST is a tax on the poor

Brendon

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GST is a tax on the poor
Sep 29^th, 2015 at 10:55pm

A family on 600 a week. Every spare cent goes into their day to day living. Most items have GST on them. So nearly all their revenue has an additional 10 percent tax.

A family on $8K a week. Their accountant is managing it all. Investments, tax minimisation. Super schemes. Family trusts, Unit Trusts. Only a small portion of their revenue goes on day to day living. Sure, if they spend they get hit by the GST. But they have the option to make their money earn money itself before they do that.

Increase the GST and the main burden is on the poor.

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AiA Gold Member Offline Posts: 18405 Gender:	Re: GST is a tax on the poor Reply #1 - Sep 29^th, 2015 at 10:59pm In the USA this is known as a "fair tax": cut taxes for the wealthy, their families and multinational corporations and put the burden on the poor and middle-class while decimating that same middle-class and tell them it is for their own good.
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Brendon

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Re: GST is a tax on the poor
Reply #2 - Sep 29^th, 2015 at 11:08pm

AiA wrote on Sep 29^th, 2015 at 10:59pm:

In the USA this is known as a "fair tax": cut taxes for the wealthy, their families and multinational corporations and put the burden on the poor and middle-class while decimating that same middle-class and tell them it is for their own good.

Morrison is "mulling" on his options for this. The poor fellow.

I just hope some right wing thinktank can write up some research on an increased GST making us all better off and it magically appears in a Murdoch rag. Gosh, wouldn't that be surprising if that happened in the next week or so.

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Grappler Deep State Feller

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Re: GST is a tax on the poor
Reply #3 - Sep 29^th, 2015 at 11:11pm

Brendon wrote on Sep 29^th, 2015 at 11:08pm:

AiA wrote on Sep 29^th, 2015 at 10:59pm:

In the USA this is known as a "fair tax": cut taxes for the wealthy, their families and multinational corporations and put the burden on the poor and middle-class while decimating that same middle-class and tell them it is for their own good.

Morrison is "mulling" on his options for this. The poor fellow.

I just hope some right wing thinktank can write up some research on an increased GST making us all better off and it magically appears in a Murdoch rag. Gosh, wouldn't that be surprising if that happened in the next week or so.

If Longy/Longie/Luong Yi were here he could sort that out for you tout de suite... oh, how we all miss Longy Cry

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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
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Unforgiven

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Re: GST is a tax on the poor
Reply #4 - Sep 30^th, 2015 at 1:19am

Brendon wrote on Sep 29^th, 2015 at 10:55pm:

A family on 600 a week. Every spare cent goes into their day to day living. Most items have GST on them. So nearly all their revenue has an additional 10 percent tax.

A family on $8K a week. Their accountant is managing it all. Investments, tax minimisation. Super schemes. Family trusts, Unit Trusts. Only a small portion of their revenue goes on day to day living. Sure, if they spend they get hit by the GST. But they have the option to make their money earn money itself before they do that.

Increase the GST and the main burden is on the poor.

The government is stuffed. All that can be done is to increase taxes.

The problem is that all the wealth generated by the mining boom was squandered in tax cuts for the rich.

Negative gearing of real estate has to be eliminated.

The number of taxpayers as a ratio of the whole population is declining and the taxpayers who are left have to take up the slack.

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The Heartless Felon

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Re: GST is a tax on the poor
Reply #5 - Sep 30^th, 2015 at 5:28am

Brendon wrote on Sep 29^th, 2015 at 10:55pm:

A family on 600 a week. Every spare cent goes into their day to day living. Most items have GST on them. So nearly all their revenue has an additional 10 percent tax.

A family on $8K a week. Their accountant is managing it all. Investments, tax minimisation. Super schemes. Family trusts, Unit Trusts. Only a small portion of their revenue goes on day to day living. Sure, if they spend they get hit by the GST. But they have the option to make their money earn money itself before they do that.

Increase the GST and the main burden is on the poor.

Before the GST we had Sales Taxes. On some everyday items it was as high as 27.5% and this was paid by the consumer.
I'd rather stick with the 10%...

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Ex Dame Pansi Gold Member Offline Australian Politics Posts: 24168	Re: GST is a tax on the poor Reply #6 - Sep 30^th, 2015 at 6:14am email the senators today, tell them to block any raise of the GST. It doesn't take long you can c+p a one liner.....please block any increase in the GST http://www.aph.gov.au/senate/los
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The Heartless Felon Gold Member Offline Australian Politics Posts: 2869 Gender:	Re: GST is a tax on the poor Reply #7 - Sep 30^th, 2015 at 7:14am Gorblimey! I agree with Pansi...
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Dnarever Gold Member Offline Australian Politics Posts: 59325 Here Gender:	Re: GST is a tax on the poor Reply #8 - Sep 30^th, 2015 at 7:28am Quote: GST is a tax on the poor That is the idea, the perfect Liberal party target.
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Grappler Deep State Feller

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Re: GST is a tax on the poor
Reply #9 - Sep 30^th, 2015 at 7:36am

The Heartless Felon wrote on Sep 30^th, 2015 at 5:28am:

Brendon wrote on Sep 29^th, 2015 at 10:55pm:

A family on 600 a week. Every spare cent goes into their day to day living. Most items have GST on them. So nearly all their revenue has an additional 10 percent tax.

A family on $8K a week. Their accountant is managing it all. Investments, tax minimisation. Super schemes. Family trusts, Unit Trusts. Only a small portion of their revenue goes on day to day living. Sure, if they spend they get hit by the GST. But they have the option to make their money earn money itself before they do that.

Increase the GST and the main burden is on the poor.

Before the GST we had Sales Taxes. On some everyday items it was as high as 27.5% and this was paid by the consumer.
I'd rather stick with the 10%...

We still have Sales Tax, and the Sales Taxes we had were very clearly bracketed, so that the luxury items incurred the higher tax. Besides that sales tax wasn't on everything, and the GST did nothing for struggling lower income families but tax them where they were not previously taxed.

If a single tax regime had gone the whole way instead of the usual half measures clearly intended to muddy the waters and choke the fish so that they were easier for the government to pull in without their noticing, it might have worked.

What is Baird offering us in return for a higher and higher GST? More government spending on rip-off sellouts to his mates so everyone pays more again, more government spending on non-essentials, more padding of government offices - yet at the same time unemployment rises, cost of living goes up endlessly, and a never-ending demand for more and more money and control over society through control of money by the State.

We need a more refined tax system with only a few strands instead of the current hodge-podge that only ever succeeds in taking from the honest.

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“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
― John Adams

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Dnarever

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Re: GST is a tax on the poor
Reply #10 - Sep 30^th, 2015 at 7:42am

The Heartless Felon wrote on Sep 30^th, 2015 at 5:28am:

Brendon wrote on Sep 29^th, 2015 at 10:55pm:

A family on 600 a week. Every spare cent goes into their day to day living. Most items have GST on them. So nearly all their revenue has an additional 10 percent tax.

A family on $8K a week. Their accountant is managing it all. Investments, tax minimisation. Super schemes. Family trusts, Unit Trusts. Only a small portion of their revenue goes on day to day living. Sure, if they spend they get hit by the GST. But they have the option to make their money earn money itself before they do that.

Increase the GST and the main burden is on the poor.

Before the GST we had Sales Taxes. On some everyday items it was as high as 27.5% and this was paid by the consumer.
I'd rather stick with the 10%...

Sales tax was on a very narrow base and started at 12% for the majority of items, there was a 27.5% rate and up to 45% for luxury goods.

It didn't tax services or direct sales. i.e no tax on your power bill etc, no tax on your building job, no tax on product purchased direct from a manufacturer or importer.

The GST is a wide based tax that picks up all these additional things and more. Particularly services.

IMO there was never a case to tax power bills and such at all.

Why do we pay tax on electricity, gas, phone bills etc ?

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mariacostel

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Re: GST is a tax on the poor
Reply #11 - Sep 30^th, 2015 at 7:52am

Typical garbage thread. How can it possibly be fair that 'the poor' be asked to contribute anything towards the massive welfare they receive?

They were fully compensated (and then some) for the introduction of the GST and the same will apply to the increase. But nothing can ever compensate for the poverty mindset. That remains no matter what is given to them.

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ImSpartacus2

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Re: GST is a tax on the poor
Reply #12 - Sep 30^th, 2015 at 8:00am

Grappler Deep State Feller wrote on Sep 30^th, 2015 at 7:36am:

The Heartless Felon wrote on Sep 30^th, 2015 at 5:28am:

Brendon wrote on Sep 29^th, 2015 at 10:55pm:

A family on 600 a week. Every spare cent goes into their day to day living. Most items have GST on them. So nearly all their revenue has an additional 10 percent tax.

A family on $8K a week. Their accountant is managing it all. Investments, tax minimisation. Super schemes. Family trusts, Unit Trusts. Only a small portion of their revenue goes on day to day living. Sure, if they spend they get hit by the GST. But they have the option to make their money earn money itself before they do that.

Increase the GST and the main burden is on the poor.

Before the GST we had Sales Taxes. On some everyday items it was as high as 27.5% and this was paid by the consumer.
I'd rather stick with the 10%...

We still have Sales Tax, and the Sales Taxes we had were very clearly bracketed, so that the luxury items incurred the higher tax. Besides that sales tax wasn't on everything, and the GST did nothing for struggling lower income families but tax them where they were not previously taxed.

If a single tax regime had gone the whole way instead of the usual half measures clearly intended to muddy the waters and choke the fish so that they were easier for the government to pull in without their noticing, it might have worked.

What is Baird offering us in return for a higher and higher GST? More government spending on rip-off sellouts to his mates so everyone pays more again, more government spending on non-essentials, more padding of government offices - yet at the same time unemployment rises, cost of living goes up endlessly, and a never-ending demand for more and more money and control over society through control of money by the State.

We need a more refined tax system with only a few strands instead of the current hodge-podge that only ever succeeds in taking from the honest.

In actual fact, that part of the Income Tax Act that deals with the tax payable by the PAYE taxpayer is relatively straightforward and would only run into something like 30 pages or so.The other 3 thick volumes of the Tax Act, running into thousands of pages, deals with all the tax lurks, tax schemes, tax breaks, tax deductions, tax concessions and tax giveaways to the wealthy and the business sector.

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cods

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Re: GST is a tax on the poor
Reply #13 - Sep 30^th, 2015 at 8:11am

Brendon wrote on Sep 29^th, 2015 at 10:55pm:

A family on 600 a week. Every spare cent goes into their day to day living. Most items have GST on them. So nearly all their revenue has an additional 10 percent tax.

A family on $8K a week. Their accountant is managing it all. Investments, tax minimisation. Super schemes. Family trusts, Unit Trusts. Only a small portion of their revenue goes on day to day living. Sure, if they spend they get hit by the GST. But they have the option to make their money earn money itself before they do that.

Increase the GST and the main burden is on the poor.

what a silly idea.. do they buy yachts and BMWs now....

come on there was a time when you didnt have a clue what sort of WHOLESALE TAX you were paying and what received wholesale tax... it was all a dark secret for the most part....also those in high places were able to buy their yacht and BMWs as gifts from their own business and claim back TAX on the gift so the govt gained nothing it was a JOKE.....a lot of FOOD does not have GST on it... get real sport......I dont see why they cannot raise the GST on luxury goods.....

I watch TV every night and see kids clothing advertised for as little as $3 and $5 for t/shirts.. I made my kids clothes .. today it wouldnt be worth it...get real mate you have no idea how lucky you are...

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ImSpartacus2

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Re: GST is a tax on the poor
Reply #14 - Sep 30^th, 2015 at 8:14am

mariacostel wrote on Sep 30^th, 2015 at 7:52am:

Typical garbage thread. How can it possibly be fair that 'the poor' be asked to contribute anything towards the massive welfare they receive?

They were fully compensated (and then some) for the introduction of the GST and the same will apply to the increase. But nothing can ever compensate for the poverty mindset. That remains no matter what is given to them.

What a scam this compensation argument is. Any compensation the middle/working/poorer classes get will be all dissipated within 2 or 3 years, as they were when the GST was first introduced and thereafter we will be left with a system that puts even more of the tax burden on the PAYE taxpayer (the people willing to pay tax) and take it off the shoulders of the greedy classes (the people who point blank refuse to pay tax and look for every avenue to avoid paying tax whilst simultaneously milking the tax system for any handout they can get).

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