January 6, 2015

What the hell, let's just eat crap and die young: that will save on education and health costs

...  Country Liberal MP Dan Tehan said on Monday that the Abbott government should begin the new year "by broadening the GST" to cover exempted items such as fresh food, health and education, saying the move would deliver up to $21.6 billion in extra revenue each year and enable further serious reductions in direct taxes.

... Jim Minifie, a Grattan Institute program director, said he did not think consumers would change their behaviour that much in response to the GST being applied to fresh food.

"People do respond to prices and if some food items were to increase in price by the amount of the GST then there would be a subtle shift towards items that are already taxed," Mr Minifie said.

"But that's probably going to lead to a less-distorting tax ... and it's very much a secondary issue because the response wouldn't be that big," he said.
Think tank:  Abbott government would raise 6 billion from GST on fresh food

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