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Thread ID: 115595 2011-01-25 06:41:00 Hypocritical? Snorkbox (15764) PC World Chat
Post ID Timestamp Content User
1172490 2011-01-27 22:15:00 A 100% increase of the current rate = 30%

Its all the way you write the word
Gobe1 (6290)
1172491 2011-01-27 22:16:00 Its all the way you write the word

Or how much you want to deliberately misunderstand, to make a point... :p
johcar (6283)
1172492 2011-01-27 22:33:00 Or how much you want to deliberately misunderstand, to make a point... :p

Be nice if my point was understood.

Is GST inflationary?, the other is called digression.
Cicero (40)
1172493 2011-01-27 22:47:00 Is GST inflationary?No, because it doesn't affect the base cost of an item, and it doesn't decrease the value of a dollar.

Inflation measures the real purchasing power of a dollar, and has nothing to do with tax.
Erayd (23)
1172494 2011-01-27 23:40:00 No, because it doesn't affect the base cost of an item, and it doesn't decrease the value of a dollar.

Inflation measures the real purchasing power of a dollar, and has nothing to do with tax.

The real purchasing power is dimished due to tax, therfore it is inflationary.

It doesen't affect the value of $ you say, try buying something with tax then something without, see if it affects your purchasing power.
Cicero (40)
1172495 2011-01-28 00:34:00 The real purchasing power is dimished due to tax, therfore it is inflationary.How? The real power must be sans taxes, otherwise we'd have a different inflation figure for every person in the country. Inflation is a single aggregate statistic. The consumer cost is increased, but that doesn't mean your dollar is worth less in other areas - but inflation does mean this. GST doesn't affect the exchange rate for example.


It doesen't affect the value of $ you say, try buying something with tax then something without, see if it affects your purchasing power.That's exactly my point - GST is not universal, has nothing to do with the base price of your widget, and doesn't alter the value of a dollar. There can be secondary effects that may ultimately affect the level of inflation, but why should GST be taken into account directly?

GST may affect how many widgets you can afford, because you're paying an extra levy on those widgets, but it doesn't affect the base cost of those widgets. If you included it in the inflation calculation, how then would you take into account businesses, exporters, changes in the reserve bank's interest rate, changes in income tax, etc?

I could of course be entirely wrong, but I simply don't understand why it should be included - it makes no logical sense to me.
Erayd (23)
1172496 2011-01-28 03:51:00 Always thought this was inflation:

www.glgroup.com

Lurking.
Lurking (218)
1172497 2011-01-28 04:34:00 Spent a bit of time reading opinions, I thought this was salient . . . . .

It is seen that the net price effect of GST would be nil if the GST is an equal-yield tax . There would not be any effect on the overall price change although there may be changes in relative prices .

The tax being revenue neutral, the aggregate demand is unchanged and so there would be no impact on the aggregate price level .

What it seems to be saying is, offset the increase in price with a reduction in other types of tax and that will nullify any increase due to increased GST .
Cicero (40)
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