|Social Welfare||DEMOCRATS TAX PACKAGE A BONANZA FOR THE RICH: St VdeP|
The Democrats' GST modification adds up to a "new bonanza for the wealthy", according to the Chairman of St Vincent de Paul's Public Affairs Committee Terry McCarthy.
He criticised its concentration on exempting food. "The simple fact is that of the $3.6 billion set aside for exempting food, only $1.2 billion will go to the poor. The other $2.4 billion goes to the rich," he claimed.
"The wealthy now benefit from a minimum tax cut of $2500 per annum, a saving of about $3000 per annum on the reduced cost of big ticket items such as cars and electronic equipment, and now a shared benefit of $2.2 billion for GST free food. The poor have no such luxuries," Mr McCarthy added.
He claimed that there are other losers under the Democrats' GST, including self-funded retirees, superannuants, those outside both the welfare and tax systems, and pensioners. "It is true that this is one of the biggest increases in pensions in years, but this has to be seen alongside the simple fact that these rises won't compensate for even bigger price increases," he said.
St Vincent de Paul 4:17pm 7/6/99