Because of the various tax cuts over the years there is a...

Because of the various tax cuts over the years there is a structural deficit problem.
This has been stated by Treasury and the only way around it is to increase taxes including the GST but no party wants to admit it before an election.
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Don't agree omeara,even thou I am no financial guru.

Put prices or taxes up, you reduce turn over, hence less revenue.


No incentive to buy or invest.

MRRT and Carbon tax is a good example.

People will do without luxuries and save their money.

If you encourage people to spend a dollar, it will go to work and change hands.

$1 dollar in one wallet is worth $1 .

$1 dollar is spent and travels into 9 other wallets, then the that dollar is now worth $10.


Government gets $3 income tax,and $1 GST from that $10.

Hence Government get 40% return being $4.

Compared to nothing on the saved dollar.

We know how many billions Labor missed out by introducing a MRRT by being stupid as well as greedy.

They made the Golden Goose very sick.

Business and people will not invest or work hard if Government take most of the profit.

Rudd and Labor can't talk themselves out of problems they behave themselves into.

cheers,

sypaladin