The current system for carving up the GST is busted - Michael Hudson: Iran, Israel, and World War III

This is the first comment to the Productivity Commission’s inquiry into how GST revenue – about $100 billion a year – is shared among the states and territories.

“WA already pay more GST contributions than all of Australia. We desperately need more GST to fix our critically ill hospital and health system, our schools are crumbling, lacking the funding to fix them and infrastructure including house [sic] is desperately lacking,” the West Australian resident notes.

The GST is broken, and hurting NSW and Victoria badly

The NSW treasurer wants to “stop the rip-off” of GST arrangements, calling for wholesale changes to the way the tax revenue is distributed each year.

Commenting on the state government’s submission to an inquiry into GST reform, led by the Productivity Commission, Daniel Mookhey said current settings were complex and opaque.

The treasurer proposed a per capita distribution, which he said would remove a possible drag on the productive capacity of the national economy.

“The current system for carving up the GST is busted.

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