The last few days in the electorate have been marked by an increasing number of people, of all political persuasions working out that the tax switch is going to see them no better off, and in many cases worse off. The GST increase, and the associated price increases are top of mind. In Wellington 6% increases in power bills and the increasing costs of bus travel will wipe out the meagre tax cut benefits for those on low to middle incomes. Everything from the increased cost of rates, rents, stamps and food have also been raised with me.
The NZ Herald had a feature story on this yesterday as well, and the experience of the family who have had the benefit of tax cuts wiped out by the government’s funding cut to early childhood education is another commonly raised issue.
The Sunday Star Times story today, though, makes clear the real problem with the tax switch
The real winners from the cuts are people earning more than $70,000 a year. Anyone earning $100,000, for instance, can expect nearly $70 more in their pay, making them $42 better off after paying that extra GST. For low income earners, the impact is marginal. Someone on $20,000 will be nearly $3 better off, while someone on $30,000 will be $6 richer.
No wonder John Key has instructed his MPs to try to sell the tax switch. The problem is people know their own budgets and costs, and no amount of spin will change that.
Posted in Tax Swindle, GST and Cost of Living. |
The GST increase on 1 October is going to have a lot of consequences, from the price of stamps going up, to schools struggling to work out how they will pay for an additional costs. Marcus Ganley, the Labour Candidate for Lambton Ward of the Wellington City Council has drawn another matter to my attention in his recent post.
The Wellington City Council has sent out a note to ratepayers suggesting that one way they can avoid the GST increase is to make their next three rate payments before the 1st of October. A nice idea, but many Wellington ratepayers are struggling to make one payment at the moment, let alone, as Marcus says three payments in the next seven
Posted in Local Government, Tax and GST. |
Posted in John Key, GST and Budget. |
It really is sobering stuff from Statistics New Zealand today with pretty big price increases in basic items. Everything is up, meat, vegetables, milk. As the Stats NZ Prices Manager said
“Although food prices are now 2.2 percent higher than a year ago, they are 12.0 percent higher than two years ago,” Mr Pike said.
This is putting a lot of pressure on people on low to middle incomes. I have seen some people in real distress in my own electorate, and social services agencies have been reporting big increases in clients. I was in Whanganui last week, and the City Mission there is struggling to cope with people looking for support, including food parcels.
Surely in the face of this the government has to re-think an increase in GST?
Posted in Tax, GST and Cost of Living. |
Jim Anderton has just drawn Parliament’s attention to this quote from John Key in October 2008.
National leader John Key said told a press conference this morning that if National is elected and does a “half decent job” at growing the economy, then increasing GST and the top tax rate will not be necessary
Now that is a serious level of self- reflection!
UPDATE: Its been pointed out that a hat tip is due to Jake Quinn over at Life and Politics was onto this earlier this afternoon.
Posted in GST. |
