PM slipping up over GST rise

The Prime Minister's opening statement of the year was a real slip up if you ask me. But one of the most concerning of the many ludicrous things he mentioned is the increase of GST from 12.5% to 15%.

How are the everyday hard working Kiwi's meant to be able to survive.. Oh yes tax cuts! But really who is going to benefit from them? It sure isn't those hard working, everyday kiwis.

Key has even confirmed that this is the case by stating there will be no decrease of lower income tax. So, those high earners (National’s mates) are the ones getting the tax cuts, while we less well paid but hard workers have to pay for them!

What I am amazed to see is not making the headlines is what the high earners do with their GST.... They claim it all back! Most people in the earning bracket John Key is planning to help out to offset the GST increase, don't need helping out! They all have their own wee business or paper businesses so that all they have to do is claim their GST back. So they already have a way of easing the stress of GST. How many people on $40,000 a year own their own business that you know of? Not many I bet.

What about those at the bottom of the financial scale? Beneficiaries? 276,000 people are out of jobs and only one third of those are able to get a benefit. I've just been onto the WINZ website to find a single unemployed 21yr + person will get just over $190 a week before tax.

Granted there are a few other things they can help with like accommodation supplements. For arguments sake lets say they get $250 a week after tax. What is your rent? $50 a week? I don't think so, it would need to be for these people though to be able to survive!

After you pay your rent, power, phone (because you need some sort of access to a phone line to get a call for a job interview) and food what do you have left? Huge debt I would imagine, because I can't honestly see how you can pay for those things as well as transport to and from job interviews, insurance on contents or car, and evening up keep of a car. Then add 15% GST to everything they use and spend on... makes things so much harder.

What about students? The future of our country? If they are lucky and on a student allowance get on average $170 a week with around $40 accommodation supplement. But that is all! They are only allowed to earn $80 a week on top of this before they start to lose money.

I can't see how a student can live off a maximum of $290 a week, when most text books cost $100 + each. Yes you get $1000 loan to cover course related costs, but when you take into account parking permits, text books (which change every six months with new semester subjects) you have very little if anything left. An increase in GST would have a huge impact on them.

Thank goodness Labour are opposing this rich person tax system. Their “Axe the Tax” Bus Tour is heading down the country so all people can get in touch with Labour MP's regarding this increase of GST. 69% of people oppose it and 63% of people feel they will not be fully compensated for it. This on top of National saying in their campaign at election time they would not increase it. With all this on our minds, we will be sure to have something to say if we see them!