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Andrew Dickens: If National is truly committed to tax cuts, they should cut GST

Author
Newstalk ZB,
Publish Date
Mon, 7 Mar 2022, 4:35pm
National leader Chris Luxon. (Photo / Jason Oxenham)
National leader Chris Luxon. (Photo / Jason Oxenham)

Andrew Dickens: If National is truly committed to tax cuts, they should cut GST

Author
Newstalk ZB,
Publish Date
Mon, 7 Mar 2022, 4:35pm

This morning new research from Consumer NZ was released that found the top national concern is now the cost of living.  

For Consumer the research confirms how badly we need stronger competition and fairer prices in the sector. 

For Christopher Luxon and the National Party it confirms how much we need tax cuts. 

This weekend in his State of the Union speech Mr Luxon declared that New Zealand was in a cost-of-living crisis. 

To battle it, his party would roll back every tax Labour has introduced. 

Including some taxes that don't even exist yet like wage insurance levies and light rail tax. 

Now, this surprised no one as since time has begun National has sought to leave tax-payer's cash in their pocket, particularly the wealthier pockets. 

And since time began Labour has always believed they can spend your money better than you can. 

What did surprise me was that Christopher Luxon went for such a safe policy plank at this remarkable time. 

I was expecting something more Churchillian. And uplifting. 

But it was safe and it's given us all the chance to talk about something else. 

So let me say how much I have hated tax bracket creep. The thresholds have remained the same for a dozen years. That's 4 governments including National who could have fixed it. 

In essence, leaving the tax brackets locked in is giving the government a tax rise equivalent to wage inflation every year. I pointed this out 7 years ago when National once again claimed to be the "no tax rise" party even though the schedular excise taxes kept going up and the tax brackets didn't move. 

Mr Luxon is right to point out we are in a cost-of-living crisis. Covid and Supply chains and cheap money are fuelling this worldwide. The Prime Minister denies it's a crisis but she should ask people who work in food banks. 

The people affected by this the most are poor and the taxes that most affect the poor are not brightine tests. 

It's the tax on everything, even other taxes. 

It's GST. 

The tax John Key famously increased from 12.5% to 15% in 2010 after strenuously claiming his government would not raise taxes 

If National is truly committed to tax cuts and truly want to help the nation in this cost-of-living crisis then why don't they cut the GST. 

Go on Chris. I dare you. 

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