Tuesday, September 28, 2010

The GST of it.

I'm sick of all this talk about the GST rise. Firstly, you're not going to pay GST on existing GST. Since every $1 you spend currently includes 11.1¢ of GST, you'll only notice a 2.235% increase in the cost of things, not 2.5%. It's a small detail, but it bugs me nonetheless.

Secondly, the new tax rates will mean that even someone on the minimum wage will be getting an extra $12.28 per week. Sure, that's not much, however they'd have to spend $549.50 in goods and services each week for that extra income to be eaten up by the GST rise. Since they only earn $510 a week before tax, I doubt that's going to happen.

Even if the tax cuts weren't happening it would barely affect you, so stop complaining about it, you're not going to suffer. Unless you're buying a new car, but then if you're doing that you hardly have money issues do you?

I like GST because it's easier for the individual to control than income tax; so have this one National, because you don't get my support too often.

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