After GST

Press, 14 February 1986, Page 16

After GST

Sir,—Mr Douglas told the Society of Accountants in Christchurch (“The Press,” February 8) that every genuine taxpayer (whatever that means) would be better off after the October imposition of GST. Come off it Mr Douglas, you do not put an expensive tax plan in place without expecting an enormous increase in revenue, which means the lower paid will be worse off. Sure we shall have a few miserable dollars more to spend, but those dollars will, by October, buy so much less than now. Indirect taxes such as GST always hurt the lower-paid most, hence around the turn of the century income tax (a direct tax) was introduced progressively. Income tax eventually became too high because our politicians are more interested in self-ag-grandisement (legislate ad nauseam), keeping their party in power at all costs, etc., than keeping the budget in balance. Now it has become a scramble for revenue so the Government can spend more, supposedly in our interest. — Yours, etc., P. A. VAN DUGTEREN. February 8, 1986.