Part 5/8:
The Political and Economic Realities
While the data is encouraging from an economic perspective, Phillips admits that political feasibility remains questionable. Expanding the GST has historically faced significant opposition, mainly because of its regressive nature. Politicians tend to shy away from unpopular tax measures that could damage electoral prospects.
Despite the reluctance, the conversation remains crucial. The government and policymakers need to weigh the potential economic benefits of a broader tax base against electoral risks, all while considering the social impact on vulnerable groups. Phillips underscores that reforms are necessary, but implementation must be thoughtful and equitable.