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Missed that, but it doesn't actually alter my point. In my example the federal govt cant stop the states levying taxes on mining, so it simply deducts the amount raised from the amount distributed through the GST to get the same effect.I wasn't, I was including all federal money going to the state.
The GST originally was designed as a simple all encompassing tax to replace a myriad of state and federal sales taxes.
I'm pretty sure from memory the same thing happened. Recalcitrance from the states was met by an offset to the GST distribution.