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By raising the GST and broadening it's base, it will hurt economic growth as there will be a reduction of consumer spending. This in turn will impact small business who will have to dedicate more time on applying the GST to their goods and services, impact their margins and likely see more closures, resulting in higher unemployment, which in turn will hit consumer spending even further.
It's a no-brainer.
I'd prefer to increase the GST but not broaden the base to essentials like food.
I don't get the concept of a reduction in consumer spending as that was the scare tactic in 1999 but it didn't happen. I also don't get the "more" time bit applying GST. Can you explain this as it only takes 5 minutes to complete a BAS. The business closures etc is rubbish as this too was threatened in 1999.
The biggest advantage on GST, and the area that needs the most attention, is it is a tax on imports. Thus reducing the competitive advantage that overseas production in low income tax jurisdictions has on local production.
at the end of the day we all know a high income tax doesn't work, doesn't generate the revenue required and favours overseas/ non-residents over locals. Thus we have to broaden the tax base by taxing property and taxing consumption. At the same time we need to ensure our lowest income earners and social welfare recipients are looked after at the same time. Its a win win!