Alternate stimulus package

[Matabele]

Rather than the scatter-gun $25 billion or so that has been sprayed around aimlessly to the unwashed herd, my proposal for economic stimulus is this.

Waive the collection of GST receipts from the business sector to the value of 25bn.  I'd imagine this would mean businesses would not remit GST collected for 3-6 months.

The impact?

Provide a 10% operating margin to every entity in the commercial sector which would keep marginal businesses viable and reduce the impending unemployment crisis.

It would put the stimulus funds directly into the hands of the entrepreneurial types who are more likely to wisely turn around and invest it in growth.

Just a thought.

 

[Guest]

Nah. Much better use of the funds to give $900 to rapists, murderers, peodophiles, dead people and 62,000 people living overseas.

 

[Nutzcraw]

Give it all to me?

 

[Canteen Worker]

Mata, you are sounding like a small businessman now. GST discounts would help some small retailers but it certainly wouldn't increase spending, which was the general idea.

 

[Matabele]

Mata, you are sounding like a small businessman now. GST discounts would help some small retailers but it certainly wouldn't increase spending, which was the general idea.

  Actually CW I'm an economist.  The rationale to get people spending is to stimulate retail so jobs aren't lost.

Better to directly stimulate retail so they don;t have to shed jobs in the first place, and in so doing give the business sector (and I'm talking Big as well as small) the opportunity to invest with greater confidence.  The aim after all is to get credit flowing so the commercial sector can kick start growth.

Even the large mining companies could do with this fillip.  It would allow them to go into mining projects that are currently marginal. 

 

[The Gronk]

[quote author=Canteen Worker link=topic=179741.msg214083#msg214083 date=1237465131]
Mata, you are sounding like a small businessman now. GST discounts would help some small retailers but it certainly wouldn't increase spending, which was the general idea.

  Actually CW I'm an economist.  The rationale to get people spending is to stimulate retail so jobs aren't lost.

Better to directly stimulate retail so they don;t have to shed jobs in the first place, and in so doing give the business sector (and I'm talking Big as well as small) the opportunity to invest with greater confidence.  The aim after all is to get credit flowing so the commercial sector can kick start growth.

Even the large mining companies could do with this fillip.  It would allow them to go into mining projects that are currently marginal. 
[/quote]

I reckon this would fail because it relies on the trickle down effect which never works.  Most of the money would stay in businessmen's pockets and they would still shed staff. 

And besides, there's no way in the world anyone would ever change the GST in any way.  Massive can of worms that is after Mr "Never Ever". 

 

[Guest]

Why not stop the 9% complusory superannuation payment for 12 months and give it to everyone in cash instead.  That would increase spending and not add to the national debt.

Keep lowering interest rates to put a lot more money into the economy as well and also not add to the deficit.

 

[The Gronk]

Why not stop the 9% complusory superannuation payment for 12 months and give it to everyone in cash instead.  That would increase spending and not add to the national debt.

Keep lowering interest rates to put a lot more money into the economy as well and also not add to the deficit.

Yeah not a bad idea - again, probably political suicide, stories about taking away people's nest eggs would be plastered over today tonight. 

A bit more creative than just pulling it out of the consolidated revenue though. 

 

[Fluffy]

it would only delay things for 3 months then businesses would have to increase their prices by 10% like they did originally on GST even when other taxes were cut

 

[byso]

What would the stuffed up labour states do without the money?

They cant even afford basic medical supplies.

 

[Matabele]

What would the stuffed up labour states do without the money?

They cant even afford basic medical supplies.

  Perhaps you could ask the good people of Queensland who've just chosen to retain an ALP government over the rednecks.

 

[byso]

Take away the GST as your suggesting and see how they go.

Hanson got 21% in Beaudesert so i'm not surprised ALP won.