Originally Posted by
minimoke
Lets look at your numbers.
Say a person earn $48,000 gross with 2 kids. pretty much the average wage and not in poverty. If they spend $23,000 on necessities that's $66 a week goes to GST. Take the gross $923 a week, less tax plus working for families this person ends up with $849 in the hand. Less than they earned
Say a person earns $23,000 gross and has 2 kids. And If they spend $23,000 on necessities that's $66 a week goes to GST. That's a gross of $364 a week less tax plus working for families this person ends up with $667 in the hand. More than they earned.
So while they both paid the same GST the poor person actually ends up better off. Thus GST is a smaller portion of income for the poor than it is for the average.