Why socialists oppose GST

We publish below a talk given by Philip Ferguson at a recent Christchurch Workers Party forum.  It is an expanded and updated version of an article originally published in the Spark in 2005 available here.

Most of the parliamentary parties favour tax cuts both for individuals and companies. Indeed, under Labour there has been a small cut in company tax and also tax credits for companies investing in R&D – and, in the latest budget, some personal tax cuts. Although the personal tax cuts are presented in a populist way, as if they would benefit workers, these parties vigorously oppose measures such as substantial increases to the minimum wage, serious across-the-board wage rises and increases in welfare payments to keep up with inflation, let alone living real wages and incomes for people on benefits. And all the parliamentary parties oppose the abolition of GST.

During the upcoming election campaign, one of the minimum platform points of the Workers Party will be demanding the abolition of GST, something that would be done by any government with even a token desire to make life a little easier for workers, especially the poorest workers.

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Abolish GST

The Workers Party for many years has said GST has to go. Below is an article originally published in The Spark in July 2005, in which Philip Ferguson explains why the rich favour this tax and why we oppose it:

In recent months the National Party has been pushing for income tax cuts. Although they present this in a populist way, as if it would benefit workers, they vigorously oppose measures such as raising the minimum wage, serious across-the-board wage rises like those sought by Auckland bus drivers and the abolition of GST.

During the upcoming election campaign, one of the minimum platform points of the Anti-Capitalist Alliance [now called the Workers Party] will be demanding the abolition of GST, something that would be done by any government with even a token desire to make life a little easier for workers, especially the poorest workers.

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Workers Party candidate calls for abolition of GST at Mayday protest

The following speech was given by Workers Party candidate for Wellington Central Don Franks at a protest organised by the Newtown Residents’ Coalition against the rising cost of living on May 2:

Folks, we’re here tonight to commemorate Mayday, International Workers Day.

This day has been marked internationally since May 1st 1886, when there were strikes and protests in Chicago in pursuit of an 8 hour working day.

The US state attacked the strikers and broke up their demonstrations. Subsequently the authorities made many arrests and 4 anarchist union organisers were hanged.

Today, here we are in Wellington many years on, continuing to mark Mayday.

This Mayday finds increasing numbers of working people feeling the pinch. Transport food and fuel prices go up, while our jobs disappear. We don’t need to go on and on about how bad things are getting, we know all that already. We can feel how bad things are getting for low paid workers.

What we want to know is what we can do about it.

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