I believe that we may be well overdue for us to seriously consider and to talk amongst ourselves about having an
overhaul of our existing taxation system and replacing it with a new reformed system that may have better outcomes for us, such as providing:
(i) A stimulus for economic growth – that would end up benefiting us all
(ii) An increase in the well- being of the Australian public.
I am not suggesting that we have just another tax grab by our politicians because they need more money, but rather that they work out a way of collecting our taxes in such a way that we have more incentive to want to work harder and earn more money. Also that not only should Australian companies have more incentive to invest their money and to employ more people, but also that foreign companies should feel that it would be a good idea to invest in Australia and in so doing provide Australia with more work, jobs and economic prosperity.
The GST looks like it may get raised to 15% in the near future, and if this was to happen we would hopefully see some decent reductions in personal income tax and company tax as well. It would also be good if we could see the abolition of all stamp duties and payroll taxes. But will this be simply a tax replacing another tax? And will we all just be in the same position? I truly hope tha will not be the case and I would like to think that there are some very smart people out there that can work all of this out and achieve the two goals I mentioned earlier – that is to provide stimulus for our economy and to increase our personal overall well being.
In any event, I would prefer to pay my taxes when I choose to buy something rather than having my tax deducted out of my pay packet before I even see it.
Finally two other areas where having a higher rate of GST may help us is:
(i) There are a lot of people who get paid in cash and don’t declare it and therefore don’t pay tax on it – and if someone was paying me in cash I probably wouldn’t declare it either – but the thing is that they are not paying their share of tax, so by focussing less on income tax and more on consumption tax (GST) this will help spread the tax around to them as well.
(ii) A higher GST would put more dollars into our economy by taxing overseas tourists who visit our country, at 15% instead of 10% in GST. Then perhaps if they pay a little more tax we can pay a little less on our income taxes.
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