Alessandra Steele, August 1998

1) Any GST is a regressive tax. I was disappointed because it was a very well thought out GST, i was hoping it would be one that would be easy to argue the demerits of.(excuse my grammar). If we had to have a GST, this would be better than any other i have seen. the problem is, i don't see why we HAVE to have a GST.

1. goods and services taxes make, by nature of the spending patterns of the rich and poor, the taxation burden on the poor much heavier (relatively) than that of the rich. being an economics student, you should know that the lower disposable income, the higher is the marginal propensity to consume. also since the GST is a consumption tax, the poor are worse hit. Rich people tend to spend a marginally (but not proportionally) higher amount of their disposable income on consumption goods, but are more likely than the poor to spend it on property, and other investments. they have more resources to avoid paying the tax, by finding loopholes. It is thus that the labor party, as a social democratic party, that is, fighting for social justice, is opposing the GST so vehemently.
2. A GST not only disadvantages, but marginalises various low-income groups within the community. Pensioners, and self funded retirees (ie the Aged); Young people earning under the tax free threshold (ie youth); Other people on benefits and fixed incomes (ie the disabled and unemployed), and its effect on women is appalling- particularly single mothers. Further more, as types of ethnic (aboriginals, other new migrants) groups typically lie in low-income brackets, it also seeks to marginalises sections of the population based on race.
3. The Liberal retrograde 'family' policy (which sinisterly underlies this 'package'), designed to encourage women to stay at home, advantages middle class men with wives not working. This is a step backward into the fifties. Howard says it gives women the 'opportunity' or choice, to stay at home, however there is in actual fact, no choice because no effort has been made to subsidise child care centres or fees, or direct any funding in that area. moreover, single parent families are already disadvantaged as i pointed out earlier.
4. Even more sinisterly, this also is a convenient way to reduce unemployment rate. the more women there are not working, and not looking for work, the lower rthe labour force participation rate, and the lower, therefore, the unemployment rate. (unemployment rate = no. looking for work/labour force participating). In this way, it can be seen that the HOward government is actively seeking to marginalise women at all levels of society

2) The electorate does not want a GST. THis was proven in 93, with hewson's loss of the 'unlosable' election. The question arises, then, why is Howard risking his political career for this 'holy grail' which is so dodgy? And i think the answer is his own personal agenda. Howard has been in and out of the top seat in the liberal party for well over 20 years. time, and time again he has been deposed by one or another of the party hopefuls. When he won this election, he proceeded to instigate programs that were popular and 'economically fashionable' such as economic rationalism \, 10 years ago! at his height. It seems he cannot move away from the thatcherite 'fuck you poor people, fuck society' attitude to economic reform. Howard is thus following a personal agenda bogged in the sordid and slimy conservative past, which has also been much discredited, mind you.

3) There is much to be said for tax reform in this country. both sides of government agree with this. Beazely is struggling to get his tax policy out, and this argument will even out. Tax is too complicated, has too many loopholes, and needs change. There is no doubt about it. However, the GST is not the only option. The GST is a catchphrase rehashed from the context of late 70's early 80's conservative economic dogma. It would be much more worthwhile to examine the australian economy, its flows and its strengths, and build a tailored tax package to suit the specific needs of the economy.

4) Finally, if howard does get reelected, and a GST implemented, then, at least one good thing will come of it. Dickhead accountants and tax lawyers will be mumush out of work, because the purpose of the GST is to simplify it. HAHAHAHAHAHAHAHAHAHA

So, In Conclusion, perhaps the reason Beazley the battleaxe is fighting the gst so bullishly is because of a certain ideological factor associated with the GST. It is borne, i believe, from a desire to see this country progress, not regress.