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.