Problems with the GST...

The GST is an issue i used to avoid writing on because i think all types of taxes have the same demand and supply effect on the economic-growth, have discussed taxes before that lower taxes would boost private spending when the public pays a higher part of their income as taxes. Both, income and indirect-taxes are levied in a big-part of the world when there should a choice to pay in indirect taxes or direct-tax over a year. This should be a choice of the public to pay either income-tax or indirect taxes. Both would have a dampening effect of demand and growth… Since taxing twice, direct-income-tax and indirect-taxes do not look rational, a developing economy is likely to have higher taxes because higher fiscal deficit and the fear of debasing money… Nonetheless, higher debt-GDP-ratio in much of the developed-world, the rolled over fiscal-deficit over the years has resulted in a heavy debt which does not allow the government to commit a stimulus the size the problem warrants… Thus, lower taxes are expansionary and higher taxes reduce demand and inflation… Higher government spending is often the cause of higher inflation… However, the economy-policy must be there to increase demand/supply and economic-growth to the potential… Nevertheless, the GST is the indirect tax part of the economy, but it would also affect demand, growth and investment in the next-period… However, I was always conscious of the problems the GST would have to be through… and a same rate of tax for every good and services would not be feasible because different goods and services have different utility and dependent on the needs of the society which is important for growth and development… which turned out to be the same as thought… we have four slabs for goods and services… Higher GST would be demand-negative which would regress both, consumption and investment… Notwithstanding a proper VAT could be the best for the economy… A single VAT –Value-Added-Tax because we also measure the GVA, i.e. Gross Value-added… According to the Laffer-curve taxes are revenue increasing only upto a point, but after then it decreases revenue… A tax on value, for both direct and indirect taxes could be the way to simplify the tax-structure for a better understanding of our tax-system. Taxes are also an effective tool to incentivize investment in case of higher social-utility or somewhat important for controlling inflation…