australian capatalism

" The GST exemption is applicable to school fees only, not uniforms, texts, transport etc. essential components of the current education system. The equity of GST-free private education that includes boarding school accommodation should also be questioned. This aspect of the education exemption does not display equality as it is in general only those families of wealth and social power (in particular within the framework of the old boys network therefore politically influential) who can in fact afford private education. "Should we be making it harder for Australian families to have and raise children?" Independent Senator Brian Harradine in his first detailed speech on tax reform posed this question to the Senate. This question was in relation to Senator Harradine's belief that key aspects in the proposal of the Goods and Services Tax "would increase the tax burden on families and even discourage people from having children by taxing the necessities of life." (The Daily Mercury, Thursday April 22, 1999) Senator Harradine's concern is in reflection of the fact that Australians are heavy consumers of services which are currently not subject to a consumption tax, these services include: newspapers, electricity bills, mortgage and rent payments in addition to essential items such as food and clothing. A key equity issue of political debate is derived from the Government's strategy to implement the Goods and Services Tax on the two essential items of food and clothing. "Excluding food and clothing from GST would deliver much larger dollar benefits to high income earners than low income earners." (The Howard Government, 1998, p.80) In an interview with Michael Raper on A Current Affair with Ray Martin, the Treasurer, the Hon Peter Costello MP defended this issue by stating that food being a part of a broad-based indirect tax was equitable. The Treasurer stated that "high income earners spend 2.