Australian Politics Forum - GST hike to hit poor hard and leave rich unscathed

Kytro

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GST hike to hit poor hard and leave rich unscathed
Nov 5^th, 2015 at 6:47am

Quote:

Lifting the GST to 15 per cent would hit low-income households hard but its negative effects would go almost unnoticed by those at the top end of society, new modelling of the proposed changes has revealed.

The alternative idea of retaining the 10 per cent rate while broadening its base would be almost as regressive.
And offsetting the tax hike with lower marginal income tax would only make the disparity between rich and poor worse.

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cods

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #1 - Nov 5^th, 2015 at 6:56am

they never explain how they arrive at these figures....

how can they possibly know???

there is

NO GST ON FRESH FOOD....

how can they possibly come up with those stats...it doesnt make any sense at all.. those figures sound as if the poor people spend on expensive and the rich on cheap...

I dont thin k so...I am sure a rich person has much more expensive items [toys] than I would ever have...cars.boats.houses.holidays.wardrobe. gadgets I am sure its the rich who fill FIRST CLASS..all of which have GST on them.

maybe I have it all wrong..

and my house is full of all the latest must haves????

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Stratos

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #2 - Nov 5^th, 2015 at 7:03am

Cods, it's more that the poorer you are, the more percentage of money you spend just in general, with very little money ending up in the bank after you've bought necessities.

Rich people generally save or invest a large amount of their money, spending a comparatively small amount on goods and services.

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Pete Waldo wrote on Jan 15^th, 2014 at 11:24pm:

Thus killing those Canaanite babies while they were still innocent, was a particularly merciful act

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Ex Dame Pansi

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #3 - Nov 5^th, 2015 at 7:06am

We don't want an increase in the GST.

We'd rather they tax the wealthy and mega wealthy accordingly.

If I was the boss multi millionaires would be paying 80% tax, that still leaves them 20% tax free to add to their nest egg, generous person I am.

This government has been told many times where to get the extra cigar money from but for some reason (self interests) they are loathe to do it.

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"When the power of love overcomes the love of power, the world will know peace." Hendrix
andrei said: Great isn't it? Seeing boatloads of what is nothing more than human garbage turn up.....

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cods

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #4 - Nov 5^th, 2015 at 7:09am

Stratos wrote on Nov 5^th, 2015 at 7:03am:

Cods, it's more that the poorer you are, the more percentage of money you spend just in general, with very little money ending up in the bank after you've bought necessities.

Rich people generally save or invest a large amount of their money, spending a comparatively small amount on goods and services.

really.. what has saving got to do with the GST?...

my home isnt lit up like a lighthouse.. as some rich peoples are...am I frugal no I live alone have no need to live in a power burning castle...

I am just asking where do they come up with these figures how do they explain them???...

as far as I know we dont pay any GST until WE SPEND OUR MONEY...

I find that GST is the fairest way to pay tax..GST cannot be written off to tax..[ a rich mans trick].you pay it and thats that....

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Ex Dame Pansi

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #5 - Nov 5^th, 2015 at 7:10am

Stratos wrote on Nov 5^th, 2015 at 7:03am:

Cods, it's more that the poorer you are, the more percentage of money you spend just in general, with very little money ending up in the bank after you've bought necessities.

Rich people generally save or invest a large amount of their money, spending a comparatively small amount on goods and services.

Yes, if the 15% is passed through parliament, the government would have to treble the dole and significantly increase other benefits ie pensions to compensate.

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"When the power of love overcomes the love of power, the world will know peace." Hendrix
andrei said: Great isn't it? Seeing boatloads of what is nothing more than human garbage turn up.....

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Dnarever Gold Member Offline Australian Politics Posts: 58828 Here Gender:	Re: GST hike to hit poor hard and leave rich unscathed Reply #6 - Nov 5^th, 2015 at 7:16am GST hike to hit poor hard and leave rich unscathed Yes it's the primary reason that a GST is always popular with the wealthy and thus the Liberals.
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red baron

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #7 - Nov 5^th, 2015 at 7:16am

I hate to say, "thus it begins' under Turnbull but..."Thus it begins."

First we have the Govt. taking away products such as Panadol and pain relief off the subsidised list. Their mouthpiece had the temerity to say that people could buy it over the counter for the same price...wrong...try at least treble the price.

Now the GST is wheeled out for another kick in the guts.

This is not looking good but there is a sliver of light on the horizon for Labor if they play their cards right.

Always, it is the poor and helpless that get clubbed by the ruling class.

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cods

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #8 - Nov 5^th, 2015 at 7:17am

Ex Dame Pansi wrote on Nov 5^th, 2015 at 7:06am:

We don't want an increase in the GST.

We'd rather they tax the wealthy and mega wealthy accordingly.

If I was the boss multi millionaires would be paying 80% tax, that still leaves them 20% tax free to add to their nest egg, generous person I am.

This government has been told many times where to get the extra cigar money from but for some reason (self interests) they are loathe to do it.

your just not thinking straight pansi.. if they did that every RICH man would live off shore..

they tried it in ENgland... years ago.. and they left in droves....its easier for a rich person to live abroad and they usually SPEND abroad at the same time...

if you won the lottery tomorrow and found yourself paying 80% on your interest where would you stash your money??>. the Caymen Islands Singapore maybe??????????????

GST is by percentage.. so if you buy a care worht $20.000 you pay $2000 in GST...if the car costs $85.000 you pay $8.500....there is nothing stopping a poor person paying $85.000 for a car.....its just very unlikely...a rich person is more likely to buy a new car every couple of years...not so much a poor person .. so who in the long run is paying the most GST..

if you smoke and drink then thats your choice they are not MUST HAVES...

but I know lots of so called poor people who do both and dont flinch at the cost...

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Stratos

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #9 - Nov 5^th, 2015 at 7:17am

cods wrote on Nov 5^th, 2015 at 7:09am:

really.. what has saving got to do with the GST?...

Don't get it? Think about it like this.

person earns 10k a year, they will spend 9.5k

person earns 200k a year, they will spend 120k

So even though the rich person is spending more in total, the person on 10k is spending comparatively more on GST

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Pete Waldo wrote on Jan 15^th, 2014 at 11:24pm:

Thus killing those Canaanite babies while they were still innocent, was a particularly merciful act

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cods

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #10 - Nov 5^th, 2015 at 7:19am

red baron wrote on Nov 5^th, 2015 at 7:16am:

I hate to say, "thus it begins' under Turnbull but..."Thus it begins."

First we have the Govt. taking away products such as Panadol and pain relief off the subsidised list. Their mouthpiece had the temerity to say that people could buy it over the counter for the same price...wrong...try at least treble the price.

Now the GST is wheeled out for another kick in the guts.

This is not looking good but there is a sliver of light on the horizon for Labor if they play their cards right.

Always, it is the poor and helpless that get clubbed by the ruling class.

rubbish no its not.. pan adol osteo over the counter about $8.. on script $6.20.. what the hell you on about...to be able to get a script for asprin to save $2 is inexcusable sorry but it is..

stop talking about POOR people they usually get bulk billed and if they dont then find a doctor who does.. Angry

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John Smith Gold Member Offline Australian Politics Posts: 74851 Gender:	Re: GST hike to hit poor hard and leave rich unscathed Reply #11 - Nov 5^th, 2015 at 7:28am cods wrote on Nov 5^th, 2015 at 7:17am: our just not thinking straight pansi.. if they did that every RICH man would live off shore.. and you think Pansi's not thinking straight? what a load of croc
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Kytro

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #12 - Nov 5^th, 2015 at 7:30am

cods wrote on Nov 5^th, 2015 at 6:56am:

they never explain how they arrive at these figures....

how can they possibly know???

there is

NO GST ON FRESH FOOD....

how can they possibly come up with those stats...it doesnt make any sense at all.. those figures sound as if the poor people spend on expensive and the rich on cheap...

I dont thin k so...I am sure a rich person has much more expensive items [toys] than I would ever have...cars.boats.houses.holidays.wardrobe. gadgets I am sure its the rich who fill FIRST CLASS..all of which have GST on them.

maybe I have it all wrong..

and my house is full of all the latest must haves????

No. What happens is that GST is applied to [most] things people buy, not just things they use disposable income on. So increasing the GST increases that taxation which reduces disposable income. Since richer people have a larger amount of disposable income, even though GST affects them, it reduces it by a lower percentage.

A simple example:

$500, $100 disposable
@ 10% $50: 50/100 = 50%
@ 15% $55: 55/100 = 55%

$5000, $4000 disposable
@ 10% $500: 500/5000 = 10%
@ 15% $550: 550/5000 = 11%

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cods

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #13 - Nov 5^th, 2015 at 7:30am

Stratos wrote on Nov 5^th, 2015 at 7:17am:

cods wrote on Nov 5^th, 2015 at 7:09am:

really.. what has saving got to do with the GST?...

Don't get it? Think about it like this.

person earns 10k a year, they will spend 9.5k

person earns 200k a year, they will spend 120k

So even though the rich person is spending more in total, the person on 10k is spending comparatively more on GST

HOW... THEY COULD SPEND EVERYTHING ON FOOD...

when did you fly first class last??????....

what has savings got to do with GST.....

its not WHAT you spend its..

HOW AND WHAT ON.. Roll Eyes

I get a long strip of tape when I go shopping listing all my goodies with costs... at the bottom it usually says GST PAID....something between $1. and $4.

I dont buy cars or boats or booze or ciggies every day....all those attract BIG GST.....

you dont want to pay GST dont buy those goods its not compulsory...... \

in DENMARK every and I mean EVERYTHING ATTRACTS A 25% GST/VAT...

you buy a loaf of bread... its got 25% GST on it...now who doesnt buy bread???????????????...................

and guess what I didnt hear anyone whingeing about it either..

In England I think its now 20%... but I dont think its on food...[not sure]... get a life mate stop whingeing..stop looking at it as a them and us type of TAX like pansi always does....we all want the same things decent roads railways hospitals.. these need to be kept up to date so we have to fund them...this is the fairest way...

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John Smith

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Re: GST hike to hit poor hard and leave rich unscathed
Reply #14 - Nov 5^th, 2015 at 7:32am

cods wrote on Nov 5^th, 2015 at 7:30am:

HOW... THEY COULD SPEND EVERYTHING ON FOOD...

when did you fly first class last??????....

what has savings got to do with GST.....

its not WHAT you spend its..

HOW AND WHAT ON.. Roll Eyes Roll Eyes Roll Eyes

I get a long strip of tape when I go shopping listing all my goodies with costs... at the bottom it usually says GST PAID....something between $1. and $4.

I dont buy cars or boats or booze or ciggies every day....all those attract BIG GST.....

you dont want to pay GST dont buy those goods its not compulsory...... \

in DENMARK every and I mean EVERYTHING ATTRACTS A 25% GST/VAT...

you buy a loaf of bread... its got 25% GST on it...now who doesnt buy bread???????????????...................

and guess what I didnt hear anyone whingeing about it either..

In England I think its now 20%... but I dont think its on food...[not sure]... get a life mate stop whingeing..stop looking at it as a them and us type of TAX like pansi always does....we all want the same things decent roads railways hospitals.. these need to be kept up to date so we have to fund them...this is the fairest way...

boy you're thick

the rich don't HAVE to buy a boat, they don't HAVE to take a trip, they'll do it when they can afford it ....

the poor HAVE to buy food, every bloody week

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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

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