Rhosty, the GST's a turnover tax but at least it doesn't cascade. Businesses claim back the GST they pay, and many transactions are exempt.

I have always been against the GST. For the last decade I've advocated replacing it with a broad based land tax, though I recognise that would have to be phased in over many years to avoid being unduly unfair to existing landowners.

The GST is regressive, but a transaction tax, whether at 1/3%, 2% or 5%, is far worse. And removing our ability to trade without involving the government is worst of all.

Stupidity's rarely in short supply among economists, but very few were dumb enough to support the PHONy Party's 2% transaction tax. Most correctly realised that it would destroy the financial sector (which relies on low margin transactions) and make businesses less competitive (due to the extra 2% cost of B2B transactions).

What is the source of your extraordinary figure that tax compliance costs average around 7% of the averaged bottom line?