Changing the tax structure
Sir, — Graeme Dunstall criticises you for suggesting that sales taxes replace income taxes. His claim that sales tax would penalise the lower income groups would be correct if .sales taxes were to be applied across the board. Surely he will concede that an increase or imposition of sales tax only on certain items, particularly luxury and imported goods would avoid this. His statement that social justice demands that the incidence of tax should increase more progressively on income and wealth is an admirable senti-
rnent but unfortunately not a practical one. Increases in taxatioi would further inhibit initiative and exacerbate the brain drain which is already serious. — Yours, oORDON V. THOMAS. April 6, 1978.
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Press, 7 April 1978, Page 12
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118Changing the tax structure Press, 7 April 1978, Page 12
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