Saturday 19 August 2023

GST carveouts

I haven't blogged on Labour's proposed vandalism of the tax system, but I have been busy elsewhere on it. Along with pretty much every other public-facing economist and tax person.

Labour's proposed pulling GST off of fresh and frozen unprocessed fruit and vegetables. It might give $4/week in savings on average, and less than for lower decile households that spend less on fruit and veg.

They've pitched it partially as a response to cost of living pressures. But the income tax thresholds haven't been adjusted since 2010. If you only partially adjusted the bottom tax threshold to account for inflation since 2017, increasing it from $14k to $17k, you'd give everyone $210. Even jobseeker benefits are now above $17k. 

So beneficiaries would get the $210 as well. 

The same $4/week, except everyone gets that amount, rather than more going to those who spend a lot on fresh vegetables. 

And without wrecking GST.

It's so stupid. 

Some roundup, mainly so I can find this all again in a decade when someone's dumb enough to propose it again:

No comments:

Post a Comment