As we all know some of the state premiers are pushing for a increase in the GST to 15% and the Federal Government has said that they we give us a tax cut so no one will be worst off.

As all the GST goes to the states and the tax cuts are coming from the federal government. The tax cuts will affect the federal government budget bottom line with less revenue coming in, so how will we get to a budget surplus unless the federal government  from somewhere else.

What infrastructure, services or programs will the government cut or will they put on extra charges if you use any of their services, will the federal government cut more money from the states to pay for the tax cuts then the states will ask for the GST to be increase again to make up the short fall.

Members of the public that saying that the GST should be increase are only looking at the dollar signs in front of their eyes, look outside the square and look at the big picture and ask how will the federal government fund the tax cuts.

You have to look at what the GST is spent on.

A 15% GST in 2015-16 fiscal year would generate around an extra $28 Billion nationally. source:

This $28 billion would be redistributed almost entirely into public services but public services also spend vast sums on private suppliers and will need more govt employees to provide the extra public services.

Income tax cuts combined with a boost in State Govt expenditures should generate additional economic activity and more employment with it which generates more income tax and company tax revenues for the Federal Govt.

What opponents to the regressive nature of the GST dismiss is the FACT that taxation benefits low income earners the most.

Most of the Scandinavian social democracies have high levels of VAT (which is just a GST by another name).  These States (Finland for example) have comparable marginal income tax rates, much lower company tax rates and a VAT of 25% 

They also have low cost quality universal health care and university education.

Labor and Leftists just use the GST as a political wedge.  Keating got another term by howling down the GST in just this fashion.  Shorten is beating the same drum.

State Public servant unions should champion the GST and shout its virtues from the highest mountain.

In the last 8 years GST revenues have averaged about $48 billion p.a.. source:  Had the GST been at 15% an extra $24 billion dollars every year could have been channeled into State Government public services.    More money, means more jobs and better conditions for State Govt employees which is what the state public services unions should be supporting. 

I can see why Labor State Premiers are taking a liking to having it increased......   



   

Bam wrote on Jan 16^th, 2016 at 12:02pm:


I guess you didn't bother to read the link?

Quote:


So are you saying the States don't get the GST revenue Bam?

stunspore wrote on Jan 16^th, 2016 at 1:26pm:


Yes you Progressives need to stop loafing and pay more tax....

I have always fundamentally believed - having lived in Australia, the UK, the US and Canada - that Australia's competitiveness is hindered by its taxation on the individual

The indirect sales tax is too low and the direct personal tax is too high and too cumbersome.

Australia needs to raise its GST from its absurdly low 10% to around 17.5% and lower its direct tax and remove many of the bandings.

Its higher rate kcks in far too early.

I would also have a top rate of tax of 40% and potentially a 50% band that kicks in on $500,000.

That would flatten the tax burden a lot and make the country more attractive to people like me.

Andrei.Hicks wrote on Jan 16^th, 2016 at 3:40pm:


Australia, the UK, the US and Canada


It seems that of these countries only the UK has a higher GST rate than Australia ?

That would flatten the tax burden a lot and make the country more attractive to people like me

What a great reason to keep it as it is.

Andrei.Hicks wrote on Jan 16^th, 2016 at 3:40pm:


Typically, I would agree. I believe that spreading the tax burden is both more egalitatarian as well as more effective. The only thing is about doing it gradually so that the changes don't overwhelm - even if it is only a perception. Politics is about managing perceptions as much as realities and is even more so with tax. The aim to is make people believe that it is fair by 1) making it fair and equal and 2) managing the methods of change to confirm that.

There are some here for whom no tax change will ever be fair unless they get to pay less and the rich get to pay more. Even if it were the same percentage of change they will still moan endlessly and yes, DNA I am referring to you and your ilk. Attitudes like those which are intrinsically self-centered and often ridiculous will simply be ignored by those in power. You need to realise that in any endeavour in life, if you are the kind of person who will only be happy if others are showering you with undeserved gifts and benefits, you will largely be ignored and shunned. If you want your voice to be heard, then make it a reasonable voice and not just a greedy self-centered one.

Dnarever wrote on Jan 16^th, 2016 at 4:01pm:


Say again? You don't see how giving the states more money for services won't provide more services?