Treasurer Joe Hockey doesn't take a hint very easily in regards to the need for a complete overhaul of Australia's taxation system. Not Band-Aid measures such as increasing the GST, which inevitably will only end up stinging the lower class at the retail end.
Hockey's commendation of New Zealand's taxation system no doubt is his way of trying to groom aussies to believe that raising the GST here, while lowering income tax and company tax, will magically make every average aussie better off financially and at the same time rectify Treasury's increasingly downward revenue earning capacity.
In the short term, lowering income tax and increasing the GST might seem to be a fair equation which will leave no one worse or better off, but ultimately how is an income tax cut of per say $20 a week on the average wage going to measure up against all encompassing GST hikes on every retail purchase an aussie makes.
Hockey's counter-argument to that will be that company tax cuts will result in retail prices coming down, but my cynical side tells me that just about every big company
& corporation wont be in any rush to lower the price of their products & services.
'Sloppy Joe' and finance minister Mathias Cormann must start taking the hint to give the progressive tax reform plan called A BETTER TAX a fair hearing which they've been snubbing all along, and 'self declared' financial experts in the media like Channel 9's ROSS GREENWOOD and Channel 7's DAVID KOCH should be 100% in favour of this tax reform plan, if they're the real deal and actually have fiscal nous. The jury is out there.
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