Wednesday, 10 February 2010

Read My Lips: National will not raise GST! [update 5]

18 Days before the election, in 2008: “National’s not going to be raising GST.”

Yesterday, 2:20pm: “The Government is … carefully considering a modest increase in the rate of GST.”

Yesterday, 5:20pm [audio]: Confirms on Larry Williams' Newstalk ZB show that (in the words of Fran O’Sullivan “the Government indeed plans to raise GST.” 

Here, then, is the horse’s mouth [hat tip Julian D.]. And it’s not a gift horse, it’s a lying one:

And no fear saying he didn’t know about the economic crisis when he said it either.

UPDATE 1: Oh, and asked in December ‘08 about raising GST or introducing of a capital gains tax, Bill English responded, “We won't be doing that... It is not our policy.” [Hat tip Gobsmacked]

UPDATE 2: For youngsters reading this wondering about the phrase “Read my lips,” it refers to one of history’s top ten most unfortunate political one-liners—the one that lost George Bush Sr. his second presidential election, i.e., “Read my lips: No new taxes”:
    “That pledge was the centerpiece of Bush's acceptance address, written by speechwriter Peggy Noonan, for his party's nomination at the 1988 Republican National Convention. It was a strong, decisive, bold statement, and you don't need a history degree to see where this is going. . . Bush raised taxes. His words were used against him by then-Arkansas Governor Bill Clinton in a devastating attack ad during the 1992 presidential campaign.”
Speaking of which:

I wouldn’t be surprised if, before the day is out, something similar (but with John Key instead of the hapless Bush I) will be winging its way virally round the web.

UPDATE 3: Key answers in Parliament.  Apparently it depends on the meaning of the word “not.”  Well, almost.

UPDATE 4:  Our Blunt cartoonist discovers an empty suit sitting dead centre on the fence . . .


UPDATE 5:  Since John Boy claims you need to know the context in which his original statement was made, here’s the original article in which he was quoted:
    “National leader John Key said told a press conference this morning that if National is elected and does a ‘half decent job’ at growing the economy, then increasing GST and the top tax rate will not be necessary.”
It just gets worse, doesn’t it.

UPDATE 6Liberty Scott reckons the ACT Party has any remaining principles then it now has to front up.  So would ACT bring down the government?
    “With the Nats now backing away from previous statements that a rise in GST is "not on the agenda" and is "not our policy", it appears the two parties the Nats need to govern need to make clear what their policies are. . .
    “Being seen to support an increase in the price of everything to offset tax cuts that may be seen to be for those on higher incomes could cost the Maori Party dearly.
    “However what about ACT? . . .
    “The test is simple - is ACT a party that people voted for so that government could cut one tax but increase another?
Will they pass?


  1. re update 3. Doubt it. Key said today, quote, "I said I wouldn't raise GST to cover deficits"

    but that is not what he " said"

    before the election " National is not going to be raising GST. National wants to cut taxes, not raise taxes "

    that 2008 question may have been framed in terms of addressing the deficit, but today, Key has misrepresented what he claimed his 2008 words were.

  2. He answered a specific question about the deficit and like it or not IF he raises GST he will provide tax cuts. Its a good idea as all those tourists will pay for 30% of our income tax cuts. Quite brilliant really. Prefer to see him abolish 30% of government departments but it will take a while for NZers to catch up.

  3. Jonkey is immitating Obama in trying to be a people's person and at the same time screwing those same people with his cunningness. Pathetic.

  4. The last time I saw the word "modest" used in a government line about taxes was 1999, when the full page Herald ad posted by the newly elected Labour regime announced "a modest 6% rise in income tax."

    And no, Peter, I'm not feeling particularly proud of the fact that I helped these plonkers into power.

    The only mitigating factor may be that, according to today's Herald report, those earning 90k will have a net return of about $50 a week. On that score I suppose higher earners are going to be better off under the National Socialists, provided of course, the modest return of *their* money isn't eaten up by his comrades, like his seemingly unsatiated and hollow-legged Minister of Transport.

  5. Key was very blunt when he promised no GST rise. There was no caveat. NZers need to tell him he is a lying cunt and that they are not gullible morons.

  6. 先告訴自己希望成為什麼樣的人,然後一步一步實踐必要的步驟。........................................

  7. There is something hilarious about Peter Cresswell running ads that support Al Gore

  8. @Phil: I must confess, I had a wee smile when I pressed 'publish.' :-)

  9. This government, this Prime Minister, the National Party, and all those who defend any of them, are a disgrace.

    The Prime Minister clearly breaks a promise and he (and his supporters) have not the integrity to acknowledge that a breach of their word took place. Somehow, to me, it is worse that they reject that they have even broken an election promise with the PM's lying in parliament yesterday trying to use semantic arguments. They are not to be trusted.

    Labour are, of course, no different.

    And these are the people that most New Zealanders vote for to tell us what we can and cannot do. Who is responsible for this disgrace? Just look in the mirror!


  10. If Key just said, "look I was wrong, I want to raise GST to pay for cuts to income tax, it's my policy for the 2011 election" then he could recover some respect. After all, the Nats promised cast iron to privatise nothing during this term, so what's the difference?

    Nothing - it's not politics being brought into disrepute, it is the reputation of politics as a career of deception being maintained.

  11. Heres a suggestion, drop the top tax rate and company/trust rate to 20%, make the first $50k tax free, slash compliance costs for business, cut Government spending drastically, then there will be more than enough money going through the economy.
    Get out of the way of entrepreneurs and let them prosper.


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