Shifting the tax mix from income to consumption is primarily about higher saving – and, thereby, investment, productivity, wages and ultimately living standards.
Whenever the national conversation turns to tax reform, soon after it invariably makes its way to the GST, and right after that, the government runs miles from any implication that it might ever touch it.
That is roughly how the last fortnight played out.
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Steven Hamilton is assistant professor of economics at George Washington University and visiting fellow at the Tax and Transfer Policy Institute at the ANU.