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