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John Key's GST Blunder

Raising taxes and putting in new ones is never a good look for any party that campaigns on lowering tax before they get into power. Especially when subjected to the added scrutiny that only the Blogosphere can give.

After stating on Wednesday that GST will most likely be raised to 15% this year (from 12%), here's John Key in 2008 stating that GST will not be raised if National does a good job in Government.



Mmmmmm.... Begs the question, really. Does this mean that National doesn't think they are doing a good job? Could a good excuse now that the proverbial fan has been splattered. John Key could come out and say that National are a bit green, and now they realise that they aren't doing a good job and the only way to dig themselves out of the hole they've made, is to raise GST.

Ok, that wouldn't go down well, either.

In my opinion, GST is one of those hot button issues that affects EVERYONE, that should have been looked at as a last resort exercise.

Saying that those on benefits will be compensated for any GST increase is the height of stupidity - it just makes all of us who are paying the taxes get really annoyed that we are going to be hit twice, once for our spending and again for those who live on benefits.

What I can't understand is why some election promises are considered sancrostant, to the point that JK will resign if he raises retirement age, while as others are not thought of as important. Surely the promise to reduces taxes would affect more of the population therefore ought to be more important? What about interest-free student loans and Working for Families, why are they untouchable?

The GST increase doesn't actually bother me too much. I can affort a 2.5% increase. What gets me is that it is yet another tax increase on top of an ETS, which will increase taxes on top of keeping in place very expensive Labour policies that ought to be scrapped first.

Until National gets it's priorities right, it will continue to blunder around. And the longer this continues, the worse they will come out of it.

Related Links: Read my lips, National will not raise GST ~ Not PC

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