Government members are talking about increasing and broadening the GST, all in the name of ‘tax reform’.
Reform has the fundamental meaning ‘to improve’.
Yet the GST falls most heavily on those on low and fixed incomes and brushes very softly against those who are the best off in our society.
Further, it is a very inefficient way of collecting tax it costs large business less than one per cent to administer it, but for small business it can cost about nine per cent.
There is an idea abroad that the only change we need in taxation is to reduce income tax, but doing that increasingly benefits the rich and costs us all the services we need.
John Hewson tells us that taxation reductions the Howard Government delivered now cost $30 billion per year.
Figures show that 42 per cent of those reductions flowed to the top 10 per cent of our population.
And that leads to an even wider gap between the rich and ordinary person.
We need the political will to really bring reform to our taxation system, so that every member of our society, including corporations, pays a fair share of the cost of running our country.
We need to do a root and branch attack on all forms of taxation evasion, and to abolish the GST.