An absolute disgrace if this is how the Government is thinking: GST: ‘Higher taxes’ to flow from reform plan.

“We still seem to be in denial about the structural budget ­deficit,” said Tony Shepherd, the former Business Council of Australia president who chaired the audit commission for the federal government. “I’d return the GST increase to those who are ­seriously in need, such as the ­bottom quartile. The top three-quarters (of people by income) are going to pay more tax — that’s the bottom line.”

Another member of the commission, Howard government minister Amanda Vanstone, said a higher consumption tax would have to happen sooner or later. “The states need more money,” she said. “And if the states need more money but we don’t want extra federal expenditure, the GST is the way to do it.”

If Labor loves all this public spending, let them get elected on the promise of more taxes. In the meantime, Mr Eloquent and his Treasurer, Mr Fixanything, should be making the case for lower spending and why it is so important.

It’s the same thing now in the US with Paul Ryan, the Republican House Speaker, working to get the revenue to pay at least some of the bills.