Not only is Liberal Premier Colin Barnett calling for an increase in the GST rate, but so too is Labor’s Katy Gallagher, the ACT’s Chief Minister (I know, effectively Canberra’s mayor).
Wayne Swan has come out of hiding saying
Surely a coincidence Mr Barnett stayed mum on the issue before the election?! A deal with Mr Abbott to keep quiet before the poll perhaps? … Less than two weeks since the election and senior Libs like Colin Barnett are pressuring Abbott to jack up GST.
Yes, well we didn’t hear from Labor’s Katy Gallagher before the election did we?
Perhaps Tony Abbott should cut the GST to 7.5 per cent? And then tell Colin Barnett that the Australian taxpayers don’t want to throw good money after bad.
It’s interesting that before the election all we heard was ‘cut, cut, cut’. Now it is about profligacy and falling credit ratings.
You don’t have to be a student of history to know that there are four common ways in which governments get into trouble:
(1) unnecessary and costly wars (even when on the winning side – think Pyrrhus of Epirus)
(2) consistently spending more than taxation revenue (and then trying to inflate the way out of the problem)
(3) corruption and cronyism; and
(4) hubris – going where governments should fear to tread / regulating that which should not be regulated / trying to control that which cannot be controlled.
If Tony Abbott pays heed to these four factors of failure, his government should do quite well.