Brian Edwards Media

Posts Tagged 'The Economy'

State House Leopards Do Change Their Spots








Today’s Herald makes interesting reading for anyone who thinks that, despite his Wall Street millions, John Key’s state house background makes him more sympathetic to those on lower incomes. GST is to rise by up to 2.5%. Such an increase disproportionately penalises those at the bottom of the economic heap – lower income earners and beneficiaries – since a much greater proportion of their income is spent on essential items such as food, power and rent. They are to be compensated by an unspecified decrease in personal taxation and an unspecified increase in benefits and Working for Families.

On last night’s Campbell Live, the Prime Minister gave Campbell a guarantee that lower income earners or beneficiaries would be no worse off after the changes in the budget. ‘No worse off’, but not necessarily ‘any better off’. Middle and higher income earners, on the other hand,  will of course be better off as a result of any decrease in income tax, since that is an economic truism. So, in a nutshell, the rich will get richer and the poor stay where they are, which in real terms means ‘go backwards’. Read the rest of this entry »