
Originally Posted by
Toaster
I personally disagree with removing GST from food goods. Having in the past administered the GST Act I can assure you it would be a nightmare to do this and it has caused many an issue in Aust (GST) and the UK (VAT) and adds cost to administering a more complex regime due to complexities around definitions of what falls in or out of the GST exemption. Removal of GST also promotes price rises, thereby often eliminating the benefit to the consumer and improving profit margins for the companies.
I recommend a reduction to all the personal tax rates and increases in the tax thresholds to most effectively provide more cash to those that earn it and also reduce the burden on those on Govt Super.
Both the resulting savings and spending are taxed (providing govt revenue indirectly instead of directly), through RWT and GST and is no more inflationary than the Govt spending (Stick that up your bum Cullen!) our taxes on burgeoning state services and govt ministries full of overpaid bureaucrats and non professional "managers" achieving bugger all towards better education or health services.
Ireland cut both company and personal tax rates dramatically many years back. Companies flooded into the economy and employment rocketed. They are considered the economic tiger of europe for their radical and very successful aggressive policies.
I second your motion. Especially after reding Don Brashes article in the Herald this morning. Normally he can be a bit of a dick, but he is right about GST being a nightmare accounting wise if it is removed only from food items. I also feel it needs to either come as a form of tax credit where the person themselves can get a tax credit on the income tax based on how much GST they spent on food for the tax year. Obviously, this moves the onus of recording the GST to be submitted for credit from the shop owner to the individual. That or just a general tax reduction.
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