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2011-01-11

GST should be on the tax summit agenda

Comments on Siobhain Ryan “GST not on the tax summit agenda, says Julia Gillard”, 11/01/2011, http://www.theaustralian.com.au/national-affairs/gst-not-on-the-tax-summit-agenda-says-gillard/story-fn59niix-1225985226619

It was a mistake that Rudd/Swan explicitly excluded the GST from the Henry Review, as reflected in what was said about how the exclusion of the GST had reduced options for change by Australian Industry Group chief executive Heather Ridout, as a member of the Henry review committee:

"I think the business community generally is very much in favour of the GST being part of the discussion on tax. Clearly, good tax theory would support that".

It will be another mistake by Gillard if GST is excluded in the tax summit this year.

Why does Gillard adopt this stance now? Is it because of Swan, still the Treasurer, and Deputy PM now?

Gillard has not learnt from the Rudd government's failures in its terms of reference for and its response to the Henry Review after its handed to them.

Have the GST on the agenda or not is one matter, and how to deal with it if it is on the agenda is another. Clearly Gillard is doing damages to her own reputation as the PM.

Who are Gillard's political and economic advisors? What are they doing? They should be closely in touch with the public and have a common sense.

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