Increase the GST or tax the rich?
Posted by John, July 21st, 2015 - under Goods and Services Tax, GST, Tax avoidance, Tax the rich.
I wrote this – Abolish the GST and tax the rich instead – over 2 years ago. In light of calls to increase the GST rate from 10% to 15%, it remains relevant today. For non-Australian friends, the GST is our consumption tax – a Value Added Tax. I said among other things:
‘Instead of arguing over keeping a highly regressive tax or making it even worse, I have an alternative suggestion. Abolish the GST. Get rid of it. Send it to hell.
‘Replace the GST with a wealth tax and increased income tax rates on the rich and capital.’
Hit the link above to read the whole article. While some of the figures need updating the general thrust is still right, I believe.
There are other options too, some of which I have written about elsewhere. Inspired by Jean-Luc Melenchon’s call for a tax of 100% on all income greater than 360000 euro I have also written we could tax all income in Australia greater than $250000 at 100%. That income is received by the top 1% of income earners.
And the linked article doesn’t address tax avoidance by big business. I talk about that in this very recent article in the current edition of Solidarity in an article called No end to profiteering and rorts at the top end of town.
If you want to comment on either article now hit the link to comments on this post under the heading.
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Comments
Comment from Brad
Time July 21, 2015 at 2:44 pm
Hi, while doing research on the GST in response to Mike Braids social media video i couldn’t help but stumble across this… and i strongly agree with you. I, personally decided to redo a lot of plans and policies and have set out to basically, in the words of a friend to me, ‘Reform Australia’ … after all in my opinion this government is just morally wrong, its lost sight a long time ago of who they are suppose to be… public servants, with the Prime Minister being the overall voice FOR the Australian PEOPLE.
So back to my original point. In my opinion how about we abolish the GST, its an un-needed, over complicated tax, but i think that’s the point? and while where at it, how about we abolish the current tax rates for both individual and company tax, i know, sounds crazy, but hear me out…
anyway. If we get rid of the GST, the general cost of living with drop by a lot, im guessing you have already done the research and know how much the GST effects, basically EVERYTHING… so lets in proposal, instead set a single percentage based tax rate? Beginning at $15,000 before tax, we set the tax rate at 5% of your overall income, then at 30,000 its 15%, 40,000 its 20% and if earning 80,000 or more a year its 25%… do the math, while in some cases towards the end it would mean less money is some peoples pockets, the more you earn, the more you pay… The RICH support the poor?
Then we do something similar with company tax, i wont go into detail so you actually want to read this all… but you get the picture right? While this is only a basic concept and still needs work in detail, you can already see the possibilities i’m sure. Again, while in some cases you will wind up paying a little bit more tax, its easy to work out how much, which means all those Tax fraud investigators working on GST fraud can actually focus on legitimate TAX FRAUD! as well as that little bit of extra tax not really mattering since the cost of living as just dropped by a lot… somewhere between 5-10% if not more, depending on what you buy weekly/fortnightly.. so anyway, you get the basic idea…
if you’re wondering why i wrote all this, its simple, i just want Australia to do the right thing. I want to live in a country where you don’t need to worry about how you live, where you get to do the things you actually want to do. To live in a place where you shouldn’t have to worry about your healthcare, or you having to worry about the bank foreclosing on your House loan.
And if i have to do this one step at a time, by myself. I will…
All i ask is that if you honestly believe this, start thinking about what changes can actually help ALL of Australia, and start causing a racket, next year is a new election and if we as a hole can show that we won’t stand for this any longer, the Government MUST listen.
Comment from Lorikeet
Time July 21, 2015 at 6:42 pm
Yes, I agree wholeheartedly with you on this, John.
When John Howard brought in the GST, we were led to believe it would hit the rich for a much greater amount of taxation. However he never bothered to mention that even destitute people living on the streets would be forced to pay tax.
If the GST is applied to fresh foods at 15%, people are likely to go back to eating more junk food and increase the cost of the Health system.
I liked Brad’s comments, but he can rest assured the government under Labor/Greens or Coalition will never listen to the people. Since the end of World War II, they have signed us up to thousands of international agreements that sell us out as a nation. Only those willing to withdraw from those agreements can save our country from economic decimation and loss of national sovereignty.
Behind the scenes, people are becoming extremely disgruntled. Let’s hope they don’t follow the citizens of Greece and leave off changing their vote until it is too late.
Comment from Lorikeet
Time July 21, 2015 at 6:43 pm
For those who aren’t aware, employees of the UN already work in the Australian parliament.
Comment from Verena Fahrni
Time July 21, 2015 at 8:25 am
Tax the rich? When their core philosophy from the Liberals is to get as many tax breaks as possible whilst in office. We are in a very dangerous situation were our media is muted and completely biased to the extend to rather keep quiet and stoke the fire with lies and with discontent in order to win and rule at all costs. Switzerland is a very good example: they do not tax the rich at all. The population is assured that they bring + create work and that’s the way to keep them. A democracy where it is best to keep quiet at all fronts, don’t feed the people and that edge of uncertainty and fear always bubbles on the surface. I really think the Swiss have a lot to answer for in regards to how the top 1% is now behaving? A good schoolmaster? If only we find a way to engage the masses. To be informed and vote for real issues and policies instead of a particular leader.