So obvious the experts can’t and won’t see it

Never let a crisis go to waste.  Never waste the opportunity to hike taxes.

These are the yin and yang of modern public policy.

In a misleading article in the AFR, John Kehoe writes that:

NSW blows whistle on tax failings

No.  No.  Sorry no.  The problem is not a tax failing.  It is an expenditure failing.  It is a government failing.

Australia’s consumption tax is the second lowest revenue raiser out of all advanced economies, forcing the federal and state governments to resort to “more damaging taxes” on personal income, business and property transactions, warns a new report commissioned by the NSW government.

Australia’s consumption tax is the second lowest revenue raiser out of all advanced economies.  Yeah.  So.  Does this mean Australia needs to increase its taxes to compete with the economic profligates in Europe?  What an utterly ridiculous proposition.

Perhaps it is the Europeans who should be admiring Australia’s low rates of consumption taxes.

And let me break it to Mr Kehoe.  It is not the low proportion of consumption taxes that is “forcing the federal and state governments to resort to “more damaging taxes” “.  It is the insatiable spending habits of federal and state governments that is forcing the resort to such taxes.

Gotta love this bit too:

Former federal Department of Finance head and current director of ANZ and Crown Resorts, Jane Halton, warned the eroding GST base was “at a cliff, a precipice” and it would become harder to fund essential government services like health and education.

Consumers are buying more GST-free items such as rent, health, education and some internet purchases, so the GST taxes about 55 per cent of household consumption, down from 61.5 per cent in its first year in 2000-01.

Taxing 55% of household consumption is not really a cliff face to TAFKAS’ mind.  But this absolute deception is in this statement.

The reason this percentage is declining is because of the increased consumption of tax free items such as rent, health, education and some internet purchases.

The internet purchase item is just nonsense given the blatant tax grab by Treasurer Frydenberg to reduce the import GST free threshold from $1,000 to NIL.

But the other 2 big ticket items are health and education; 2 services managed, charged, “produced” and distorted by government.

So what is really being said is the because the government is too incompetent to manage health and education — everyone else has to pay for it.

So Ms Halton, as former head of the Commonwealth Department of Health, how well did you set up Australia for managing a pandemic and what does Australia get for the $700 million tax payers give to the department?  Huh?

In one of his very few recent recent pieces  where he was to the point and didn’t write like he was paid by the word, Paul Kelly hit it on the nose yesterday:

The politics of GST reform are obvious: the states get the revenue and are the winners, the national government must tolerate the political heat. Exhortations around the 20th anniversary that strong leadership is needed to launch another GST reform are both true and worthless.

Message to Australian Governments.  Fix your own finances before you try to screw ours.

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29 Responses to So obvious the experts can’t and won’t see it

  1. a happy little debunker

    Let’s not forget that other source of GST-free consumption, Fresh Food.

    The government lockdowns both allowed & required people to spend more time in their own kitchen.
    People did as governments demanded and in turn the governments want to make more demands.

    When the GST was proposed and introduced the states said YES we will eliminate stamp duty – they never did…
    Now that the states want the GST increased they promise that this time they will eliminate stamp duty – by replacing it a land tax.

    This is revolt that Australia needs – not the malarkey over ‘deaths in custody’.

  2. Jane Halton should be called out for blatantly lying. I’ve been buying quite a number of items from overseas this year and every retailer has charged me GST. What else is she lying about?

  3. Rob MW

    Yeah. So. Does this mean Australia needs to increase its taxes to compete with the economic profligates in Europe? What an utterly ridiculous proposition.

    Lol TAFKAS………….. winner of the understatement of the understatement of the year.

  4. Jock

    I totally agree. I actually made a submission on the report. Didn’t receive anything to say it was read or considered. My main beef was the lack of information in the report. Graphs of expected revenue and expenditure saw a blow out in costs. But the way the report was written you would think it was our fault for not paying enough tax. When you looked at the graphs carefully you see that revenue on a bau basis was rising quite well. The real issue was the explosion in expenditure caused , the report says, by an aging population etc.

    The paper went on about nsw taxes and how inefficient they were. They recommended a land tax. But I proposed that they show real balls and go a poll tax. Let’s face it, a poll tax is efficient and all users contribute. Not just someone with a house . Bet that caused a few skid marks.

  5. grumpy

    How about government does what every person and private business does?
    LIVE WITHIN YOUR MEANS YOU B…TARDS!

  6. Rob MW

    Former federal Department of Finance head and current director of ANZ and Crown Resorts, Jane Halton, warned the eroding GST base was “at a cliff, a precipice” and it would become harder to fund essential government services like health and education.

  7. Struth

    Old conspiracy theorist stroooof ‘ere , at ya service.

    Halton is quite an active piece of shit.
    Maybe some of you might like to look her up.
    She was one of the main members of the WHO plandemic planning commitee at event 201.
    She’s up to her eyebrows in most of the shit that is going down at the moment.here she is please check out what she has been up to.

  8. Struth

    She was also trotted out by Liberal party hack, Credlin, in some sideline expert.
    She is global socialist activist and her next call will be to keep heading toward a cashless society, for the sake of recouperating taxes lost to the entitled fucks.

    She is a UN hack and globalist scum.

  9. John Bayley

    How about government does what every person and private business does?
    LIVE WITHIN YOUR MEANS YOU B…TARDS!

    But see, they now have a ‘scientific’ proof that they don’t have to!
    The Magic Money Tree (MMT) theory, otherwise known as ‘Ctrl+P’ says that a government never needs to worry about spending money it does not have.
    In fact, the more they spend, the better off we all will be.
    Amazing that nobody had thought of this before. /s
    I wonder why they need taxes at all, if it’s all so easy.

  10. H B Bear

    AFR still Australia’s leading anti- business daily.

  11. Neil

    The Magic Money Tree (MMT) theory, otherwise known as ‘Ctrl+P’ says that a government never needs to worry about spending money it does not have.

    MMT only works if a country has a sovereign currency or so they say. So it does not work for Greece because they have the EU

    And pigs can also fly.

  12. Philby

    How about we widen the net of GST by removing all refunds of GST on vehicles that business claims. Most of them apart from trucks and special vehicles are used for private purposes then there is the fuel expenses GST that all small up to large companies including farmers claim back as well . Private consumption of goods and materials by GST registered businesses if not declared means all GST is refunded. These are only a couple of the scam. I agree governments should live within their means and get better value but we have lost control through weak governments and inept public serpents. Everything they touch is a shambles.

  13. Spurgeon Monkfish III

    Karen Halton is an unflushable turd.

  14. Spurgeon Monkfish III

    When the GST was proposed and introduced the states said YES we will eliminate stamp duty – they never did…

    My recollection is that the states never agreed to the removal of property purchase stamp duties. They weren’t going to be killing that golden goose any time soon. As for a land tax – no bloody way.

    However, mortgage stamp duties were (largely?) abolished (they definitely were in NSW). If you think that’s chickenfeed, I once incurred a mortgage stamp duty slug of over $1,000.

  15. Rob MW

    How about we widen the net of GST by removing all refunds of GST on vehicles that business claims. Most of them apart from trucks and special vehicles are used for private purposes then there is the fuel expenses GST that all small up to large companies including farmers claim back as well . Private consumption of goods and materials by GST registered businesses if not declared means all GST is refunded. These are only a couple of the scam.

    Capital business expenses mate, but nonetheless why stop there ? Why not all capital business expenses like office computers, work uniforms & footwear, heavy machinery etc ? You do know that company tax is paid on profits don’t you mate ? Explain why taxing a capital expense does not alter the rationale of not taxing gross income before applying capital expenses ?

    The only scam here mate is you.

  16. Reduce the size of government and leave the GST at its current rate.

  17. RobK

    Australia’s consumption tax is the second lowest revenue raiser out of all advanced economies. Yeah. So.
    Who raises less revenue? Is it a lower rate or narrower base?
    Having to increase the rate because the base has narrowed, as suggested by the article, is pretty dumb given that it is essentials and healthy food that is exempt. To me that is a sign that living standards and discretionary spending is down . To me the correct response would be to address red tape and administrative overheads.

  18. Squirrel

    An honest analysis (taking account of all the work farmed out to consultants and contractors) would show a big increase in real terms in public sector administration costs in the period since the GST was introduced.

    Waste of the GST windfall by state governments was a regular Question Time topic for the Howard government and it has not gotten any better since then. They’ve done the same with the stamp duty revenues from the property boom – it was ironic, in yesterday’s National Press Club performance, to hear Perrotet say that the WA Govt. should have put mining boom revenues in a sovereign fund to cover them in the lean years – perhaps he and Pallas et.al could have done the same with their stamp duty windfalls.

  19. Squirrel

    Having just consulted some old editions of Who’s Who, I see that Ms Halton’s father was recruited (presumably by Gough?) to be head of the federal Transport Dept. in 1973.

    I have long thought that one of the (many) problems with The Bubble is multi-generation bureaucratic families. In its own way, that would be as much of an issue as multi-generation dole families – kids grow up with an entitled attitude to to other people’s money.

  20. Tel

    It’s completely wrong to compare Australia to an “advanced economy” when our primary exports are basic agricultural commodities, a handful of different unrefined minerals, tourism, massages, golf courses, beaches, etc.

    We are a third world economy that happens to speak English, usually respects property rights, and mostly not too corrupt.

  21. Neil

    It’s completely wrong to compare Australia to an “advanced economy” when our primary exports are basic agricultural commodities, a handful of different unrefined minerals, tourism, massages, golf courses, beaches, etc.

    In the late 1970’s we used to make everything. Now it is all gone. Apparently close to 100% of the stuff in KMart comes from China.

    WE are even importing food. I stopped purchasing the bottled garlic cloves in brine at ALDI because it came from China. So i get the raw cloves from ALDI now and they were made in Australia. Saw some fresh cloves at the local Plaza in a grocery shop that were half the price of the ALDI product which i thought strange because ALDI is usually cheap. Then i found out why. It said Product of China. So we are even importing fresh garlic.

    If not for mining we would be cactus

  22. NoFixedAddress

    I think GST should go to 20%.

    The dams should be dismantled.

    Every coal fired power station should be shut down by 2021.

    All the ports of Australia sold to the CCP.

    Every suburb and town should have their own State and Federal member of Parliament.

    We need twice as many local government areas.

    And every home should have a State or Federal Public Servant.

  23. Hay Stockard

    No taxation without representation. Not those socialist tools. They represent chancers and other members of the kleptocracy.

  24. Squirrel:

    I have long thought that one of the (many) problems with The Bubble is multi-generation bureaucratic families. In its own way, that would be as much of an issue as multi-generation dole families – kids grow up with an entitled attitude to to other people’s money.

    Multi generation bureaucratic families are the biggest threat to the Australian future, and for the very reason you address. Especially when it is in tandem with gutless spiv politicians.

  25. Spurgeon Monkfish III

    perhaps he and Pallas et.al could have done the same with their stamp duty windfalls

    The most obscene wastage of stamp duty windfalls in NSW occurred when Boob Carr was premier. Indeed his odious little homosexual treasurer Michael Vegan, used to publicly (and frequently) boast about how much money was flowing into state treasury via property stamp duty. This occurred during a time of unprecedented destruction of Sydney’s built environment through the mass construction of shoddy ugly chicom dogboxes across the entire metropolitan area. Needless to say, most of this wondrous windfall subsequently mysteriously vanished, with pretty much absolutely nothing useful remaining to show for it.

    Politicians are the most evil incompetent and utterly corrupt quisling scum to have blighted this nation. There is no longer any possible justification for their existence.

  26. Roger

    GST revenues declinging.

    Wages stagnant.

    Unemployment up.

    Many small businesses about to close their doors thanks to a government induced recession.

    Solution: We need to broaden the consumption tax base!

    Idiots.

  27. Diogenes

    The real reform should be
    1. Excise on booze/smokes/fuel abolished and GST is raised to whatever level is required to operate the Federal Govt which is then constrained from spending on anything other than sect 51 activities, which is basically just maintenance of the borders(Foreign Affairs, Defence, Customs), social security and indig affairs.

    The states are given income tax powers, ideally, a poll tax that is paid on by every household and business (same rate for both) monthly and states are forbidden from “harmonising” this tax or other charges. The states are allowed to keep(! ie no new charges), or increase charges/taxes over and above inflation whatever other taxes they choose EXCEPT stamp duty on homes(allow greater mobility from state to state).

    Every time you look at a docket you will see what the feds cost, and every time you look at your bank statement you see what your state is costing. This will naturally reduce duplicate spending, Federal spending, and states will be forced to compete.

  28. NoFixedAddress

    Diogenes
    #3502342, posted on July 3, 2020 at 10:05 am

    The real reform should be
    1. Excise on booze/smokes/fuel abolished and GST is raised to whatever level is required to operate the Federal Govt which is then constrained from spending on anything other than sect 51 activities, which is basically just maintenance of the borders(Foreign Affairs, Defence, Customs), social security and indig affairs.

    The states are given income tax powers, ideally, a poll tax that is paid on by every household and business (same rate for both) monthly and states are forbidden from “harmonising” this tax or other charges. The states are allowed to keep(! ie no new charges), or increase charges/taxes over and above inflation whatever other taxes they choose EXCEPT stamp duty on homes(allow greater mobility from state to state).

    Every time you look at a docket you will see what the feds cost, and every time you look at your bank statement you see what your state is costing. This will naturally reduce duplicate spending, Federal spending, and states will be forced to compete.

    How dare you!

  29. Jimf

    The only thing (tax) junkies can think of is their next hit.

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