More taxes will not solve our economic woes.

Pericles thanks. I knew it was much more complicated. Are we paying tax on tax as the process proceeds? I believe it is a dishonest tax. I remember at the time, it being presented as a smaller tax than wholesale which could have been 30% or more at point of sale. The difference was that it was a one off tax. The correct name for the GST is value added, which explains how it works.

I do not understand why Mr. Rudd exempted the GST from the tax review. I think it has been in play long enough to see if it performs as well as was promised. I believe that the Labor government made it clear, that once introduced, there was no going back. I have been told I was wrong in this regard, but any voter that thought otherwise was not thinking. I think many relied on the Democrats not to let it through.

It maybe a good tax but there is no way it is not regressive. It is on most of the basis goods we buy.

A transaction Tax is no different to a GST. A flat rate GST or flat Tax for that matter is the fairest method of taxation. Included in this tax should be all service costs from medical to pension. Why there are still people out there who don't comprehend this is beyond me. I assume they're the same as those who want everything without any input. Sorry, but life's not like that. Pull your own weight & if you need help the GST has got it covered. Simple.

I forgot, we did not pays sales tax on services. I might be wrong but back in the days of high taxation except for some state taxes, the government relied mostly on progressive personal tax

Arjay>>More taxes will not solve our economic woes.

How would you feel if you only paid 2% of your income in tax, with the remainder being excess 'spending money'.

This is a chance to test this tax without disrupting the present system and, it may well prove once and for all that a transaction tax is the better way to go. After all, it would be the banks that are paying the largest share, which is only fair as they make thier profits from our money.

GST. Once and for all, you are wrong.

GST is only paid once, and that's by the end user. All other gst payments are credited back to the payee.

Example.
I buy a cow, $250, I pay $25 gst. The farmer pays this $25 to the government, iI then claim it back.

I buy $300 worth of goods and services and pay $30 gst. This $30 is paid to the government, then I claim it back.

I sell it as meat and there is no gst.

However, if I sell it to a restuarant, they cokk it and charge gst. That gst is paid to the government and they keep it, unless of cause I take my staff out for dinner, then I pay the gst, the restuarant pays it to the government then I claim it back.

Every cent of gst paid in the process of doing business is paid by the recipient then claimed back by the payee.

The government does have contol of this money for up to 90 days, but that's it.

It is not a tax on tax, that's a smeer campaign, and a very good one at that.

rehctub, We need new Govt banks to create the money to equal our increases in GDP.$8000 per working person is created as debt by private banks to equal increases in GDP + inflation when in fact it shoulf be created as a tax credit.So we are paying $16,000 + interest pa per working person to private banks for productivity we already should own.We could reduce our taxes if we could free ourselves form this Globalist monopoly of banksters.