Personal Income Tax and Ian Macdonald

growth Proposal: Key points:GST would cut personal income tax, Turnbull says He is not convinced it encourages economic growth Proposal has not passed 'first test' yet Ian Macdonald does not support increase Several state premiers have thrown their weight behind the proposal, arguing the revenue from the increase could help them meet budget shortfalls, according to Australian Broadcasting Corporation. But Mr Turnbull told the ABC Insiders program if the Government pushed ahead with the GST hike it would also cut personal income tax instead of handing the revenue to the states to plough into education and health. Related Story: Unease on Government backbench over potential GST increase Related Story: Coalition MPs fear electoral damage over potential GST hike Map: Australia Prime Minister Malcolm Turnbull says he is not yet convinced that increasing the goods and services tax is a good idea. He said at this stage he was not persuaded a GST increase would encourage economic growth. "It not a question of politics here. Particularly in the area of compensation." GST debate dead, buried and yet to be cremated It seems all but certain that sometime between now and the middle of March the Turnbull Government will officially rule out lifting the GST, ABC Chris Uhlmann writes. At this stage I remain to be convinced to be persuaded that a tax mix switch of that kind would actually give us the economic benefit that you'd want in order to do such a big thing," he said. "The objectives of this or any other tax change have got to be fairness, no increase in net taxes. "We don't want to increase the total tax take and, of course, it got to deliver a strong growth and jobs outcome otherwise it isn't worth the trouble and expense of making the change." The Prime Minister said the proposal had not yet passed the "first test" applied to all policies. "You have to first decide: is this policy going to give you the economic outcome you want Then you have to assess the practical politics," he said. "With the GST income tax swap proposal, it has not yet passed that first test and that what the analysis is being undertaken. "So, we have not made a decision on that yet, and it does pose a lot of complexity. (news.financializer.com). As reported in the news.