The NSW Opposition has slammed Mike Baird’s plan to raise the GST by 50% as unfair and unworkable.

Under the plan the bulk of the revenue raised would go to funding tax cuts for corporations and high-earning individuals.

Just a fifth of the $32.5 billion a year raised by the GST hike would go towards paying for schools and hospitals.

It will also fall to lower and middle income families to shoulder the burden at the cash register when the GST is raised from 10 to 15 per cent.

Since last year Labor has advocated for an end to the aggressive competition between states that lower taxes in order to attract business and investment but which ultimately erodes source revenue.

Labor argues that state taxes such as payroll tax, racing tax and road user charges should be harmonised. It is also pushing for multinationals to pay their fair share of tax. 

Quotes attributable to Opposition Leader Luke Foley:

 “Mike Baird’s plan will make households pay more for everything they purchase in order to fund large tax cuts for corporations and high income earners. It’s unfair and Labor will not have a bar of it.”

“The Premier has walked away from his responsibility to get a fair funding deal for NSW schools and hospitals.”

 “Mike Baird wants families and households who are already struggling with the cost of living to pay more so that he can cut corporate taxes.”

“Cutting taxes for the very wealthiest in society in the hope that the money will trickle-down and one day pay for our hospitals and schools is fantasy economics.”

Quotes attributable to Shadow Treasurer Michael Daley:

“Mike Baird has capitulated to Canberra on cuts to health and education and is now trying to sell a whopping GST increase. They are not going to buy it.”

“He could have used his position to stand up to his mates in Canberra and fight against cuts to health and education but instead he has become the chief salesman for a plan that will hurt lower and middle income families.”