The goods and services tax is slowly capturing the low, middle and high ground.
The GST is becoming more popular among people for very different reasons. There is an odd alliance between business and social-welfare groups to support a GST. These two extremes of the income table have the most to lose or the most to gain from a GST, depending solely upon how it is implemented. For middle-income groups is not likely to make much difference immediately, but they are in there with support.
The middle ground support is reflected in the latest Bulletin poll which shows that 56 per cent are in favour of it and 37 against. Coalition voters are much more likely to support it. But the swing towards a GST is perhaps more a result of dissatisfaction with the present system, than an open embrace of a GST. The poll showed also that 66 per cent of people thought the present system needed to change.
The middle-ground PAYE taxpayers appear to be saying they are sick of being ripped off with ever higher income taxes being taken out of their pay while the high income earners escape through negative gearing, trusts, income-splitting and other avoidance schemes and people on low incomes get unearned money from the government.
The lower income earners have a different reason for supporting a GST. The Australian Council of Social Service and others are concerned that the tax base is narrowing and that in turn is causing governments to cut spending on the needy in society. They would support a broadening of the tax base to include a GST, provided it did not mean low-income earners were hit harder and provided it meant that overall revenues would rise so that governments had more money for the needy.
Continue reading “1996_07_july_gst”