No more GST, raise the minimum wage instead PDF Print E-mail
Wednesday, 12 August 2009 08:55

no GST

 

Today government officials made public intentions to revamp New Zealands taxation system (see here). Among their ideas was the lowering of the staggered income tax rates, with the revenue loss made up by increasing the Goods and Services tax (GST).
GST is a flat tax, on all consumer products, meaning that for basic sustenance it costs everybody about the same amount. However, for those of us on low incomes, for whom things like food and other consumables account for a substantial portion of our weekly income, these flat taxes are a heavy burden.


Progressive taxes, like income tax, ensure that those who earn more contribute more financially to the maintainance and development of society.
Flat taxes punish those of us who are already in the most dire of circumstances. In essence, it taxes the first portion of our income, rather than the last.

As an ever increasing number of jobs are being lost, and business profits remain low, this latest move by the government is nothing more than an attempt to make those on the lowest incomes pay for the crisis of the most wealthy section of society. It amounts to a lowering of the minimum wage and a cut to benefits.
The wealthy won't go without should food prices go up by 5 percent. We will.

This plan needs to be vigorously opposed. GST should be scrapped and instead the taxation on the highest income earners should be increased. Additionally,  the minimum wage should be increased as this is one direct step that can be taken to truly raise the standard of living in this country and improve the conditions for those who need it most.

 

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