Why is GST not increased instead of interest rates to reduce spending?

My understanding regarding interest rate increases is that the outcome is to reduce spending, it would appear to me that those who have house loans are not able to spend anyway and it is those without house loans who are the culprits. So why do we not increase the GST instead of interest rates? This would reduce the large bank profits and allow more infrastructures to health education, roads and so on to be carried out and would benefit all, instead of a minority and reduce fnancial pressure on families.

Why is GST not increased instead of interest rates to reduce spending?credit repair

Good question but don%26#039;t tempt the pollies

Why is GST not increased instead of interest rates to reduce spending? loan

Higher interest rates allow people to save their money and get a greater return on their money to invest it later. The government already has tons of money to spend on roads, education, etc. but it never seems to make it to this point. It seems to be invested right now across the seas. Taxing goods and services hurts, but most of the big spending has interest involved. For instance, if you want to control spending, you might not worry about groceries and stereos as much as you would purchases on houses and cars. These big purchases require interest rates.

One must be very careful raising in taxes as a politician, because it is hard to reduce taxes once they have been raised, especially with the Democrats in our houses, and their potential to fully take over in 2008.