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GST increase inevitably unfair

NSW premier Mike Baird’s proposed hike in the GST rate to 15 per cent will inevitably make Australia’s tax system even less fair by increasing the burden on low and middle income households.

Whatever compensation is provided to low and middle income households will soon fall victim to future state treasurers and their push to cut other taxes.

If the objective is to raise revenue fairly, then state and federal leaders should concentrate on closing the tax loopholes available to large corporations and high net-worth individuals and increasing top-end marginal income tax rates.

Mr Baird’s promised compensation is a complicated and flimsy alternative to a progressive income tax system that does not invite intricate avoidance schemes available to the rich.

This is a Tory scheme that is nothing but an inefficient and unfair excuse for not raising the top marginal income tax rates.

Raising the GST rate is a lazy fix to Australia’s revenue needs. It is easy on the premier and his constituents and tough for everyone else.

The GST is a flat tax that proportionately collects more from those who can least afford to pay.

Mike Baird is proving to be the premier for the well-off.

His proposal will work well for his constituency of bankers, wealthy business people and rent collectors.

It will be another burden on those struggling to make ends meet.

John Kaye, Greens NSW MP  


2 responses to “GST increase inevitably unfair”

  1. Len Heggarty says:

    John,
    You state the economics. It is more than economics. The economics becomes a culture-shock linked to power.
    Have you noticed that before the GST was established, we were more egalitarian, and more friendly.
    Now the rich are not only rich but they are more arrogant and showy in their power that comes with being rich. They are more toffee-nosed and abrasive and status climbing than the rest of us. This is being borne out with the referendum for the Aborigines in the Constitution as we now have riots about racism and religion in the community.
    In 1967 there was no worry about a referendum in regards to Aborigines. Now in 2015 there is great community concern meaning we are more racist now that in 1967. So a hike in the GST has worse consequences than just keeping the poor, poorer. It is to give the poor and down-trodden a kick in the guts that they are second-class citizens and not worth feeding.

  2. Mike baird and his predecessors gave away lotteries and tab and all the other golden egg layers ,allowed casinos to be privately owned and now think it is a fine idea that the tax payer should ante up more to cover up shortfalls,real or otherwise,so that he and his successors can continue their nose in trough existances, corruption,and other perks.i think our system is so badly broken that a substitute,something totally new needs to be,at least,searched for so that we can rid ourselves of a cancer called politicians.kenny ah shay

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