At present John Key and National are floating the idea of raising GST
(goods and services tax) from 12.5% to 15 percent, while lowering income tax for all and also reducing company taxes. Key and his pals present this approach – lowering direct taxation and increasing the tax on consumption – in a populist way, as if it would benefit workers. Key has added that the Working for Families package could be increased, along with some other measures, to help offset any losses for lower-waged workers and the minimum wage has been increased (minimally) by 25c an hour. Once again, there is nothing for beneficiaries.
The first thing to note about GST is how it affects people on lower incomes the most. [Read more...]