The right shows its true colours

The right wing has been in government for less than a year and here it comes. Higher GST proposed to shift tax focus from incomes

Raising the rate of GST could increase the economy's efficiency if it was used to shift the mix of taxes away from income tax, a working group reviewing the tax system says.

They were pissed that they have had to cancel the proposed long term tax cutting regime because the country can't afford it. But wait, we can cut taxes, all we have to do is shift the burden.

The panel comprises private-sector tax specialists, academics and Government officials.

How odd, no advocates from the bottom of the socio-econiomic heap, where are the unions in this? Oh wait, we have the right in power. Dumb question.

An officials' briefing paper issued yesterday said lifting GST to 15 per cent would raise an extra $2.1 billion a year. That would rise to $6.2 billion if the tax was set at 20 per cent.

The working group believes it should not be increased to fund additional spending but only as part of a revenue-neutral package of tax reform. It accepts there may be fairness issues, although it says GST is less regressive than generally believed, especially if measured over a lifetime.

"Increasing the rate could impact on lower-income or vulnerable households, especially in the short run," the panel said.

Yah, right. This will only kill you in the short run, but in the longer term you will be better off.

How come we never hear the words "this will impact high income and well off hosueholds, but only in the short term"? There'd be an assassination.  But screwing the poor, that's more like sport isn't it old chap?

True colours.