GST "fairer"? That's a lie! The following article was published in "The Guardian", newspaper of the Communist Party of Australia in its issue of Wednesday, July 7th, 1999. Contact address: 65 Campbell Street, Surry Hills. Sydney. 2010 Australia. Phone: (612) 9212 6855 Fax: (612) 9281 5795. Email: <[EMAIL PROTECTED]> Webpage: http://www.peg.apc.org/~guardian Subscription rates on request. ****************************** By Anna Pha With its GST legislation now law, the Federal Government is moving swiftly to sell it to a reluctant public. Howard's multi- million dollar "information" campaign will emphasise the personal income tax cuts and "compensation" for families while ignoring or playing down the fact that the GST will put up the prices for goods and services. As from July 1, 2000, there will be a flat 10 per cent tax on most goods and services, to be paid by consumers -- working people, pensioners, the unemployed, students -- at the time of purchase. Prime Minister John Howard, in his address to the nation on July 1, described the new tax system as a "fairer and simpler tax system -- one that is good for Australia". With a flat tax the poor pay the same rate in the dollar as the rich, and they pay it on a far higher proportion of their income. The GST will apply to gas, electricity, phone calls, postage, electrical repairs, motor repairs, public transport, haircuts, and other services. Books, including school and university text books, will be taxed for the first time. Other education expenses (but not private school fees) will be taxed -- canteen lunches, stationery, research-related expenses and fund-raising. Rental payments and water are exempt for the time being. The Australian Democrats failed to deliver on their pre-election promise of "no tax on food" -- only fresh foods are exempt. Snack food, chocolate, soft drinks, take-aways, restaurant, hotel and other prepared meals will be taxed. This includes sandwiches, pies, pizzas, ice-cream and fish and chips. Sports, and other forms of recreation will be taxed -- tickets to watch a match, membership fees, uniforms, equipment and travel. There were no exemptions for the arts, only a committee to investigate the impact of the tax! The cost of diesel excise for heavy transport will fall by 23 cents a litre and the cost of petrol used in the commercial operations of farmers and other businesses will fall by about seven cents a litre. This will mainly benefit the big transport companies. The cuts in the diesel excise were summed up in a statement by 15 environmental organisations: "Over three years the package invests 8 billion dollars into pollution and 3 billion into trying to clean it up." During the wheeling and dealing with the Government, the Democrats ditched a number of their own amendments to the legislation, including specific GST exemptions for meals on wheels, public library services, government grants, recreation programs for under-14s, the underpriviledged or people with disabilities, short-term residential accommodation and sponsorships. Trade unions and other community groups will, for the very first time, have to collect tax on subscriptions, membership fees, publications, mail order catalogues, interpreter services, courses and workshops (except first aid and lifesaving), and accommodation. The much touted four per cent rise in pensions, amounts to a real increase of only two per cent -- hardly enough to compensate for paying 10 per cent extra on daily expenses. Businesses will benefit from the removal of $7 billion of taxes and more benefits are to come as the Government "reforms" company taxes. As for the personal income tax cuts, someone on $20,000 a year will gain $540 as against tax cuts of $3,222 a year for those on $60,000. The new laws do not address tax avoidance by the wealthy and big corporations and the rorts and the "bottom of the harbour" schemes will continue unchecked. The funding of the cuts depends on continuous economic growth over the years to come. The Government apparently believes that they have put an end to boom and bust cycles. The reality is that within a few years the Government will be funding the tax cuts by reducing expenditures on public and welfare services or by putting up the GST rate. The Government is now moving to "reform" company taxes and aims to cut corporate taxes from the present 36 cents to 30 cents in the dollar. The GST is all about shifting the tax burden from businesses and the wealthy onto the backs of the working people, the unemployed, pensioners, and others on low incomes. That was always its aim and with the connivance of the Democrats, the Coalition Government has succeeded. When Howard claims that the GST is "fairer", he is telling a lie. When he says it is "simpler" he ignores the fact that all businesses and organisations are forced to become tax collectors for the Government. When he claims it is "good for Australia" he really means that it is good for big business. The Guardian 65 Campbell Street, Surry Hills. 2010 Australia. Email: <[EMAIL PROTECTED]> Website: http://www.peg.apc.org/~guardian -- Leftlink - Australia's Broad Left Mailing List mailto:[EMAIL PROTECTED] http://www.alexia.net.au/~www/mhutton/index.html Sponsored by Melbourne's New International Bookshop Subscribe: mailto:[EMAIL PROTECTED]?Body=subscribe%20leftlink Unsubscribe: mailto:[EMAIL PROTECTED]?Body=unsubscribe%20leftlink
