A different slant on the GST debate

As the heads of Government debate the West Australian Government’s plea for a greater one off share of GST revenue lingers without result our very own Mayor has waged into the debate with a totally different agenda. An agenda worth giving consideration to.

 

Unley’s Mayor Clyne entered the debate with a responsible focus on let’s find a solution to generating tax revenue in the future for South Australia. To find out what he has to say and the research that prompts him to take this stand go to Mayor Clyne’s website.

I have long been one to recognise that tax is best generated on strong economic activity. If our businesses are thriving and finding employment for our citizens then by default the governments (both state and federal) raise more tax revenue. I have also believed that our own State Governments over the years have not done enough to entice businesses, even to the point of doing the reverse by threatening to punish them if they fail to succeed.

South Australia has in my opinion a long history of getting in business’s way and making life difficult for them. This in turn dries up our economy and reduces tax revenue. Sometimes I wonder whether we in South Australia have a welfare state mentality or paradigm.

Mayor Clyne’s blog post links this to the major source of State tax revenue, the GST. From the beginning of the GST South Australia was viewed and accepted by the Commonwealth and the other states as in need of receiving more $ than we create as a state. I guess that group of people also saw as something of a welfare state.

OK. So we have more km of roads per head of population than the others states. Similar observations can be made about other like government expenses. I accept that and see that as a good argument for us receiving a greater share.

BUT. What if we could generate enough income as a state that we could survive on $ 1.00 for every $ 1.00 tax generated by our economic activity?

Well done Mayor Clyne. I hope others join the conversation.

 

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