Tony Abbott won’t rule out a GST hike to pay for his tax cuts for millionaires

Posted on August 14, 2010

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Tony Abbott has refused to rule out an increase in the GST to pay for his tax largesse for millionaires.

The Daily Telegraph has revealed that Mr Abbott’s tax plan would increase tax for over 5 million middle income earners, to partly fund tax cuts for millionaires.

The Daily Telegraph has revealed that Mr Abbott’s plan means:

Tax up $200 per year for a person on $40,000;
Tax up $100 per year for a person on $60,000;
Tax up $500 per year for a person on $80,000.

These tax slugs on working Australians will help fund his tax cuts at the top end:

A tax cut of $3,300 for a person on $200,000
A tax cut of $4,800 for a person on $300,000

On the 7.30 Report last night Tony Abbott did not rule out increasing consumption taxes to pay for his uncosted tax largesse.

Kerry O’Brien: “I wonder have you got any idea how many tens of billions that would cost, and also, does it mean that you would have to consider replacing the GST with a new consumption tax on business, as Henry suggests, designed to raise much more money than a 10 per cent GST?”
Tony Abbott: “Obviously, Kerry, there is gonna be a big price tag on these reforms. And that’s why what we need to have is a debate…”

7.30 Report, 10 August 2010

From day one, Federal Labor has been clear that we will not increase the rate or base of the GST, both when we commissioned the independent tax review and when we released it.

Tony Abbott’s colleagues got a nasty surprise in March when he asked them for forgiveness rather than permission for his $6 billion grocery tax.

http://www.abbottfacts.com.au/news/tony-abbott-wont-rule-out-gst-hike-pay-his-tax-cuts-millionaires

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