The TV has a new anti-government hobby. Bashing the proposed GST increase. Blathering on about how the possible 15% is going to affect we poor simplistic consumers. Of course completely ignoring the reality that the Nation has a debt problem caused by excess prior governmental expenditure.
Who gives a stuff about the Nation? certainly not the infants writing the TV broadcasters' news scripts.
Hello, hello. Fifteen years ago the GST was introduced with accompanying tales of woe from the mainstream media. Well it has been a success and here is where a lesson in reality and history kicks in.
Prior to 1 July 2000, we were paying Sales Tax. Do you recall that Jewellery, TV's, Hi Fi Systems and Cameras paid 33% Sales Tax. How does that compare with a possible 15%? How's your maths? There were 2 other rates. 20% and 10%. If you are interested, do your own research. As far as the MS Media is concerned, history commences tonight at 6.00PM on TV. Most is forgotten soonest after!
Do you know how to reduce the impact of a GST increase? Spend on essentials and stuff you really need and reduce or stop spending on stuff you only want. There is a difference.
Also what is forgotten is that the Federal Government distributes the whole of the GST Revenue to the States. In 2000 the deal was to be - that in consideration for the States to receive the whole of the GST in proportion, the States had to discontinue taxes like, Stamp Duty, Payroll Tax etc. Guess what? The Feds kept their side of the bargain, but the States did not!
1 comment:
I remember sales tax, and the arguments in favour of a GST (and those against, as well).
I also have serious misgivings (having managed to avoid using the word "concerns") about the process of running tax flags up the flagpole to see who salutes.
There are manifold flaws in our methods of funding our social programs, those being the very reason we have taxation. As with our overall politico-legaL system, we need an all-embracing review, leading to an action plan, to determine the revenue quantum and then a fair & equitable method of raising those funds.
Anything less than that is simply tinkering - it will provide no durable outcome and satisfy no one. Whether an increase in the rate, or broadening the base, of the GST has merit as a component of the plan, it certainly will be a fizzer as the standalone, knee-jerk tactic currently being debated. It smacks of bread & circuses.
Of course an action plan requires first a vision and then leadership to bring the populace along. I'm waiting for that visionary to appear. This student is ready.
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