Quote:
Originally Posted by Tinordi
My point was that you gave examples of bad policy. Rerun simply dismissed it saying that bad policy is good policy in the eye of the beholder.
I couldn't disagree more. Bad policy is bad policy. GST cut is a great example, there's no way you could rationally make a case that that was good policy no matter what your stripes or "poison."
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Sure there is.
Yes, if they were going to cut a tax, it should have been a proportionate amount of income tax as opposed to GST. A consumption tax is always economically more sound for government revenue than a lump sum tax. That said, a lower rate of total taxation increases consumption more than it decreases government share of GDP and sometimes increases revenues if spending is higher.