Patricia Apps is a professor of Public Economics at the University of Sydney, and one of Australia's best tax policy analysts. This article on the redistributive effects of the GST (originally published in The Conversation) highlights the negative consequences for tax incidence and economic participation from broadening the GST.
While I don't disagree with her analysis, I have a relatively minor quibble about her policy conclusion—broadening the GST base (and not increasing the rate) to improve the efficiency of the tax is worth doing for its own sake. However, we need to acknowledge Professor Apps' analysis and accompany GST broadening with reforms to the income tax and transfers system which, not only address the redistributive problems of broadening the GST, but also improve the progressivity in the tax and transfer system and remove the distortionary effects of that system on workforce participation.
What Professor Apps' article does highlight, is how poor is the quality of taxation analysis and debate in this country. To the extent that she shines a light on simplistic (even sloganistic) notions of tax reform, her article is commended for your reading pleasure.
