- Don Franks
Celebrating the 20th anniversary of Labour’s Goods and Services tax, Listener columnist David W Young wrote:
” The reason GST is much-loved by right-of-centre policy wonks in New Zealand and marvelled at by their colleagues overseas, is that it’s “pure”. (Finally, a tax that right-wingers like!) GST wasn’t adulterated to make it palatable to the masses. Calls to exempt food, education and health were rejected by Douglas and Brash’s committee. The few exceptions are rents on residential rental properties, donations and financial services.”
“The biggest concern about GST was that it would disproportionately harm the poor. That argument, made strenuously by unions and mainstream politicians in the 1980s, has shifted over time to the fringes of debate. It’s based on the fact that GST is effectively a regressive tax, because poorer people spend a greater proportion of their income than the rich, who put more into savings.”
(“Happy Returns”, Listener Dec 1 2006)
Today, argument about GST is continuing inside the trade union movement, but with some union leaders opposed to the wishes of their rank and file.