GST Shenanigans

[c9]

So the cut in the GST of 1% costs about $5B per year. The government had to raise taxes elsewhere to pay for it, and therefore income taxes went up slightly. This was considered not a huge deal because they had only just been lowered in essentially a campaign ploy. But anyway.

My paycheque today is $4.46 lower than my last paycheque, reflecting the income tax increase. That means, each month, I have to buy $892.00 worth of GST-taxable goods and services to make up for it. Who's up for some shopping?

Not me.

Comments

Funny...

[(Anonymous)]

...I was actually discussing that with Ben the other day when I noticed a note on the ManuNet saying taxes were being raised slightly. The economist in me came out in my explanation of how the gov't needs to recoup the cost from somewhere else - yay, us for being the lucky victims! It's my hyposthesis that the gov't will actually make more by having raised the tax!

Finally, my degree is coming in handy!

Ashif

Re: Funny...

[c9.livejournal.com]

I'm not certain about whether it will make more or less (just haven't thought about that much yet) but it certainly targets very different groups. Families making like $50k-$250k will save more, but the somewhat poor ($10k-$20k let's say) will lose out, and the very rich don't give a shit about GST. :)