The Conservatory - 12
Unfortunately, he did nothing more than declare Labour would reverse any of the largely proactive changes hinted at ... kind of ... maybe.
Gone are the unequivocal promises to reverse an increase in GST. Now Labour are looking at – but not promising – removing the GST on fruit and vegetables. This is a fundamentally stupid idea that will remove the simplicity of our current GST system. While maybe good intentioned, this just raises too many questions to be a workable policy. What are vegetables? When do they cease to be vegetables? When do they cease to be healthy? The change would benefit no one but the lawyers. Do we really want to see court cases to determine whether something is a biscuit or a cake, a cracker or bread, as has been seen in Australia and the UK? The loopholes and definition problems are enormous. We should learn from these overseas experiences and reject this foolish populist move outright.
National’s proposed decrease in the top tax rate should not be viewed as disproportionately favouring the rich, either, but rather as taking steps to remove the current punitive tax to which those on a very middle class income are currently subject. Making money is not in itself an evil; it is not socially harmful and so should not be taxed as if it were. Taxing consumption more and income less is a good move, and will help to incentivise the kind of activity we want to improve New Zealand’s future.
Goff’s promises to reverse the drop in the top tax rate shows that Labour cannot get over Michael Cullen’s tall poppy attacks. To attract the world’s brightest and to encourage skilful New Zealanders to return from their Oes, we need to get rid of this top tax rate. The current model creates a redistribution of wealth beyond that necessary, at the expense of our entrepreneurs and successful people.
Goff is spouting nothing but desperate ideas that will continue to doom the country. He has set the Labour party on course to return to higher taxes in addition to confusing GST exemptions. That GST exemptions are a fundamentally bad idea must be clear to Phil, he’s been around far too long to think otherwise. This makes his speech a hollow attempt to gain votes.