A GAFFNEY POLITICAL INSIGHT INTO GST-VAT

The demise of the crass idea of extending the Australian GST is quite explicable:-

The support behind VAT and other consumer taxation shows us how the wind is blowing on Washington weathervanes.  There are other winds, however, outside the Beltway.  The fate of England’s Charles I in 1642, of France’s Louis XVI in 1789-93, of Russia’s Nicholas II in 1917-18, of Indiana Senator Albert J. Beveridge in 1922, of House Ways and Means Chairman Al Ullman in 1980, and Japanese Premier Uno in 1989, all manifest a tendency of voters to retire statesmen who identify with consumer taxes.

– Mason Gaffney “Coordinating tax incentives and public policy: the Treatment of Land Income” (May 1969, The Brookings Institution, and since updated)

Technicians seeking more of Professor Gaffney’s insights should take a peep at his comprehensive website.

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