The proposed rise in GST makes the Prime Minister John Key “Robin Hood in reverse” says the Alliance Party, which probably means he is playing the role of the Sheriff of Nottingham – robbing from the poor to help the rich.
Alliance Party spokesperson Victor Billot says an increase on GST to 15% to offset tax cuts for the wealthy is taking money from the pockets of struggling families on the breadline.
The rise in GST will subsidize unaffordable income tax cuts to people such as John Key, and indeed all MPs, whose incomes are far above the average.
Mr Billot says the idea that GST increases are somehow going to encourage savings amongst working people is bamboozling.
“He obviously doesn’t understand the difference between a family struggling to ‘consume’ food, rent and power bills, and a family who are ‘consuming’ unnecessary top end luxuries.”
Mr Billot says amongst the “anti tax” rhetoric there seems to be a lack of appreciation that without taxation, New Zealand and indeed civilization itself, would collapse.
“The great gains in public health, education, welfare, infrastructure and services of the past century have all been funded through taxation, and are now at threat by irresponsible Government’s beholden to powerful private interests.”
The lack of any serious moves on a capital gains tax was also a major failure.
Mr Billot says that major business figures have recently called for capital gains tax and even currency movement taxes, so these policies were quite mainstream.
“However, as National seems to represent the unproductive speculation sector that is whom their policies are helping.”
“What has happened to the affordability of housing under National and Labour in the last few years is a national disgrace, the full effects of which are only beginning to be seen.”
The Alliance proposes a major change in New Zealand’s tax system, phasing out GST and reducing income tax on lower income earners through a stepped progressive tax system.
Progressive income tax would mean higher taxes paid by those who can afford it (such as John Key), a capital gains tax on investment property (not family homes) and also a financial transactions tax on movement of money that would only affect larger transactions.