The Forum > General Discussion > How GST has affected our lives
How GST has affected our lives
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I admit I am a fence-sitter on the topic of GST - I can see both the arguements for and against. It has certainly simplfied matters for most retailers, but complicated them for service industries in particular.
As to stamp duty, you need to look back at our taxation history and that which we inherited from England. We make a big song and dance about the widening gap between and rich and the poor, but once upon a time that gap was much bigger than now. Land-based taxes were the most common (income tax is only a relatively new concept), as the thought-process was that only the rich could afford land, and thus could afford to carry the bulk of the tax burden. Hence the use of taxes such as stamp duty on land purchases. The other side of the coin is that the problem with asset taxes such as stamp duty, is that the tax can possibly be levied on someone that is asset rich but cash poor. Hence income taxes are now more popular (with governments anyway!) as its taxing cashflow and hence is a lot easier to recover.