Thread: Expenditure Tax.... the Gamechanger?

Originally Posted by BathurstTom

Without any investigation and off the top of my head, won't this discourage spending, encourage saving and shrink the economy?

The GST at 10% didnt seem to do that.
Although it isnt on some things,its on most.

So i doubt 2% will make much difference.

Wouldn't it be a Far better idea for the government to stop wasting our tax dollars on bad management, bad ideas and rorts.
This way we wouldn't need a new tax and maybe even pay less tax

Inflation is climbing, Wages are stagnant and all of a sudden a extra tax cost is a good idea
You can only get so much blood out of a stone.

I like the idea, Instead of 36% of my time worked going to the government plus another 10% (post tax ) on top of that on what I spend.
A flat 2% sounds real good.

A flat 10% on all income - no deductions, no tax free threshold. everyone pays the same... sounds even better though.
Would encourage people to spend their money on assets that will generate further income. No more negative gearing BS, no more useless work utes every 2 years just because they're cheap due to tax breaks.

Makes sense in my head

seems some think the expenditure tax is additional to others......it isnt . The 2% is the only tax anybody pays on anything. My illustration showed how easily and rapidly the govt defecit would be removed and a surplus generated forever. No more lying sneaking thieving and cheating necessary to give favour to anybody.

you would never need the tax rebate again....hopefully. There would need be no tax claims as every thing you purchase includes the 2% in the price.

it all seems a bit rose coloured glasses but it appears to have merit.

Originally Posted by ramblingboy42

seems some think the expenditure tax is additional to others......it isnt . The 2% is the only tax anybody pays on anything. My illustration showed how easily and rapidly the govt defecit would be removed and a surplus generated forever. No more lying sneaking thieving and cheating necessary to give favour to anybody.

you would never need the tax rebate again....hopefully. There would need be no tax claims as every thing you purchase includes the 2% in the price.

it all seems a bit rose coloured glasses but it appears to have merit.

I'd vote for it.

Originally Posted by Discosux

I'd vote for it.

I did once think Joh Bjelke-Petersen flat tax was a great idea RIP idea and rot in the ground perhaps mr joh who was proven a crook I hear

Originally Posted by JDNSW

GST is exactly the type of tax you are proposing. But it is far from universal, with too many exceptions, and it only applies to final expenditure. (If you try to apply it to every step of expenditure, it has all sorts of problems - for example, consider the relative tax paid by a business that does everything in house compared to one that buys in parts - the former pays tax on the sale price, where the latter pays tax on both the final sale price and all the input prices.

VAT/GST is a multistage tax, and it was deliberately designed as such, cf sales tax which was only applied at the last stage.

Originally Posted by NavyDiver

I did once think Joh Bjelke-Petersen flat tax was a great idea RIP idea and rot in the ground perhaps mr joh who was proven a crook I hear

The only reason people thought that it was a good idea was that they hadn't worked out how much tax they were actually paying: people tended to focus on the highest marginal tax rate they paid and invariably assumed that was the rate of tax they paid on everything. In point of fact the overall tax rate was the blend of rates that they paid. The Bjelke-Petersen flat tax was 25% on everything, no exceptions. That's actually more tax than most people were paying back them, or now.