ANY VOTERS LEFT IN D5?: Economic Effects of Hughento's GST Tax Plan

[King]

United States
GDP per capita: $37,800
Unemployment rate: 5.2%
Poverty rate: 12%

Countries using GST (averaged)
GDP per capita: $25,050 ($12,750 lower than US)
Unemployment rate: 8.75% (3.55% higher than US)
Poverty rate: 15% (3% higher than US)


That is all I have to say.

[Platypus]

The US is an economic powerhouse, so it is completely inaccurate to compare it with other countries, and also to lump all GST-uising countries in one basket. South Africa for example, along with countries like Australia where it is a sucess.

In Australia and the UK, unemployment is at historically low levels, and both countries use a GST; and in Australia since the introduction of the GST our GNP per capita had risen, interest rates have stayed in the lower reaches, and our economy is the strongest in the western world.

It isn't often when I can say the Howard government did the right thing, but they definently did in introducing the GST. For me to endorse something similar to the Howard government, you know that I'd have to be very, very confident it was a good policy, and I certainly am with my GST plan.

[King]

The US is an economic powerhouse, so it is completely inaccurate to compare it with other countries, and also to lump all GST-uising countries in one basket. South Africa for example, along with countries like Australia where it is a sucess.

1)  If the US is an economic powerhouse, why do we need this?  Also, wouldn't that mean any success of these puny non-economic powerhouses is also irrelevant?

2)  Without South Africa
GDP per capita: $27,100 (still $10,700 lower than US)
Unemployment rate: 6.6% (still 1.4% higher than US)
Poverty rate: 13% (still 1% higher than US)

[Platypus]

1) To make the average Atlasian have a better, fairer tax system; to balance the budget, and to make the economy stronger. It's still powerfuil, but it's struggling.

2) Which other countries did you use? Which countries were used for which indicators?

3) Compare other statistics, such as national debt.

[The Duke]

Is the GST offset by tax cuts elsewhere?

[Platypus]

Yes. My plan includes reducing business tax for small and medium sized businesses, and if we can do it with a balanced budget, eliminating taxes for small business, and more importantly, reducing income tax to a level that allows for a small buffer of budget surplus (about 2% or so) but still eases the squeeze on Atlasians. Whilst I can't give you the exact figures (that'd be for the Sec. of the Treasury) it is a fairer tax system. I'd also like to very significantly reduce or eliminate income tax for the lowest brackets, because if they are buying anything more then necessities they'll be paying tax anyway, and if they can only afford to buy necessities they definently shouldn't have income taxation.