GST vs income tax as tax on services

Edwards Finance > Loans

Q. My understanding is that income tax and company taxs both tax services, indirectly. That is, services are provided by companies and individuals in the form of labour etc. Therefore income tax and company tax are taxes on those services, albeit indirectly. The taxes are not paid by the users as such, however the more a service is used, theoretically the more income and company tax is paid. So inderectly the greater amount of use, the greater amount of tax paid. This seems to me to avoid the fact that if you add a tax to a service (thereby making it more expensive) you are taxing the laabour that goes into it. Some polies called a GST a tax on jobs. Using the way I have explained above it seems that this is the case. Of course income tax is a tax on jobs. But it is not an "additional" burden, as such a tax is already in place. Why aren't we in search of a better system, for there is always a better way.

A. -All goods sold include a component of the labour involved in producing and delivering the goods to the customer, that currently incurs a tax called Wholesale Sales Tax. Many services are provided without any goods and thus do not incur any s

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