From: cwarren@peg.pegasus.oz.au
Newsgroups: aus.politics
Date: 05 Oct 92 22:01 EST
Subject: Re: GST - Bloody Stupid
Nf-ID: #R:peg:996200269:peg:996200273:000:5218
Nf-From: peg.pegasus.oz.au!cwarren    Oct  5 22:01:00 1992


            GST
            
            One contributer (Andrew Waugh) made the useful point
            about the necessary amount of paper work needed to
            reclaim GST.  Typically, one thoughtless soul snarled
            back - let 'em all get cash registers.
            
            As usual, the snarls came from boring ol' suter.  He
            obviously knows scant about real life private enterprise
            in the current economic crisis.
            
            Placing such a burdensome paper-work task onto small
            business (particularly self employed people, not
            capitalists) will upset the balance between small, middle
            and big business.  The self-employed and the small family
            business do not necessarily use cash registers nor have
            working time available for yet more paperwork.
            
            GST paperwork will be trivial to large business,
            bothersome to medium business, but burdensome to small
            businesses.  Liberal's GST therefore gives big business a
            competitive advantage over small and family business.
            
            The effects of this are, probably;
            
            1.  Marginal small businesses, just making ends meet
            today, will be bankraupt after GST and on the dole.
            
            2.   All business will face increased overheads which
            must, depending on the size of the business, affect their
            bottom line.  It means more administration and less
            production for the same resource.
            
            3.   Small business per dollar invested creates more
            employment than big business.  Contraction of small
            business activity, will created a damaging contraction of
            employment which will not be matched by any expansion of
            business activity by big corporations.
            
            4.   A lot of small business people are not grandly
            educated and resent or feel uncomfortable with continual
            regulations that come and go, which they don't really
            understand.  These (market gardeners, painters, handymen,
            taxi proprietors, small shopkeepers, etc etc) will tend
            to skip the paperwork and therefore leave the GST with
            the government.  Most people do not have fancy degrees,
            diplomas, and certificates.  The average Australian has
            only a servicable command of written expression and most
            Australians leave school after fourth form.  They do not
            operate in the world as politicians, professional people,
            and middle class trendies do.  There is nothing wrong
            with basic education BUT for Hewson's approach to GST.
            
            NB.  By small business I do not mean business conducted
            other than in order to make a reasonable living.
            Capitalist business is a different matter - they will
            borrow to fund the computer-time and/or staff to monitor
            and claim GST and then pass the cost of this additional
             borrowing onto us, the twice-taxed consumers.
            
                               ooOoo
            
            However Hewson's GST threatens further problems arising
            from the reality of parliamentry politics.
            
            GST proposals need Senate approval, and Hewson has no
            hope of controlling the Senate as Democrats are affirmed
            opponents of GST.  It would be the death of the Democrats
            for them to backslide over the GST.
            
            This leaves Liberal cronies only one option, a double
            dissolution shortly after the next federal election.
            Then, Libs hypothesise, they could get GST through a
            Joint sitting.  The public will not look too kindly at
            such deliberate provoking of double dissolution of
            parliament.
            
            In a double dissolution, where 12 senators are up for
            grabs all sorts of independents and political vagaries
            emerge.  In such a climate, Democrats probably will
            increase senate representation and liberals will loose
            (in part due to their paleolithic tariff policy).
            
            In the HoR I wouldn't be surprised if more independents
            get in - the Senate opportunity giving their causes and
            organisation a powerful political fillip.
            
            All in all, Hewson's GST is going to upset Australian
            society and politics much more than is generally
            recognised.  Unless of course he doesn't get past the
            next federal election.
            
            If he really had the interests of Australians at heart he
            would dump GST and develop some more sensible approach to
            the problem - but this is not the path likely of such an
            economic ideologue, is it?
            
            
            
            CHRIS WARREN
            
But don't blame me - I voted for the NDP.

Newsgroups: aus.politics