Sinclair Davidson writes:
The Henry Review indicated that the GST had a deadweight loss (the loss of value that occurs when a tax is imposed) of some 8 cents in the dollar, compared to 24 cents for personal income tax, and 40 cents for the corporate income tax. So increasing the GST and reducing income tax rates looks like a win-win for everyone. On a purely economic assessment that is what many economists would recommend.
…but
Voters and taxpayers do not want Canberra to have too much access to easy tax dollars because they know full well the power to tax will be abused.
Read more at Increase the GST to 20%? Yes, but I wouldn't recommend it.