Swagman wrote on Nov 5
th, 2015 at 7:29pm:
ACOSS and all antagonists of the GST, overlook whom actually BENEFITS THE MOST from the GST revenues?
Yes the GST is a "regressive" tax, BUT low income earners and those on Govt benefits are the very individuals that tax (of any kind) benefits the most.
Even without any rise in benefit payments as compensation the improvements brought on by extra funding to hospitals / public transport / schools that extra GST revenues would provide would benefit low income earners the most.
This is "any tax". If more tax is collected and also spent on services used most by the poorest, then by definition it will help. It's not the GST specifically.
Swagman wrote on Nov 5
th, 2015 at 7:29pm:
According to the last budget figures GST revenue was around $57 Billion dollars. At 15% it would return around $85.5 Billion. Imagine what an extra $28 Billion would do for GOVT services?
Assuming no drop in Income tax, which is unlikely.
Swagman wrote on Nov 5
th, 2015 at 7:29pm:
GST is efficient. The very regressiveness of GST allows the GOVT to collect revenues from the cash and black economy, from non-tax paying tourists, income tax evaders whenever they spend their cash.
Tourists are entitled to claim back most GST.
Swagman wrote on Nov 5
th, 2015 at 7:29pm:
Low income earners are a small spending demographic. Essentials are mainly exempt. The big spending is done by the rest of the consumer economic demographic. I don't have the figures, but how much of that $570 Billion in spending ($57B GST x 10) was made by low income earners compared to everyone else last year?
I agree, the GST still targets the wealthy the least, and so imposes a higher burden on everyone else. The entire point of raising the GST and lowering income tax is reduce the progressiveness of the tax system.
Swagman wrote on Nov 5
th, 2015 at 7:29pm:
A large proportion of low incomes are actually accessed from tax revenues. Centrelink payments, heath concession cards, transport concessions, utilities bills concessions. ACOSS needs to factor those items into its modelling.
Low income earners would reap RETURN benefits in spades from a GST increase.
Higher income taxes on the wealthy could do the same without shifting the burden
GST is a tax on spending therefore it targets the weathly the MOST. Seriously, how hard is that to work out?