A flat goods and services tax advantages the middle-class somewhat -
there's only so much that you can consume. That's why unprocessed
foods were exempted. Shame the lower classes tend to prefer
Macdonalds. And it really is a tax on everything, including a postage
stamp and an insurance premium. The aim is to recognise that we live
in a tertiary economy - most 'stuff' is manufactured in China (10%
import duty into Aus) but we make our living these days by cutting
each other's hair and lawns. Unlike the European VAT, however, it's
largely invisible to the consumer except in the case of a pure
service such as an auto repair where a labour charge is listed.
Because my 'fee for service' work, like journalism, falls below a
certain threshold ($50K p.a. turnover) I don't have to bother with
declaring it or remitting it to the government thank goodness.
It should not be confused with the occasional mad proposals for a
flat income tax - that's an entirely different basket of snakes.
Andrew Fildes
afildes@xxxxxxxxxxxxx
On 25/10/2008, at 5:09 AM, Ken Norton wrote:
> A flat tax would never fly here because of the class warfare which is
> inherent to our culture.
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