So I have been reflecting on how the CoL (and the Media Party) do their propaganda campaigns in relation to tax in general; a real gem is when they call them ‘levies’ not taxes and do so with straight faces. The most recent example was when Jacinda was thumping the pulpit claiming we were being ‘fleeced at the pump’ by petrol companies but we are actually been fleeced by the CoL fuel taxes. Classic deflection technique by Jacinda and minimal balanced reporting by media.
The next example is when National was going to give tax cuts for workers. The CoL stopped these tax cuts thereby stiffing their traditional voters. Minimum reporting by the media on the impact this would have. CoL announced that GST on internet shopping to ‘level the playing field’ with domestic retailers would be applied – just before Christmas too, which was decent of them. Except the domestic retailers are actually no better off; the GST goes straight to the government so, in effect, the CoL were the only ones to benefit from this tax. The punters with less disposable income, who can’t afford to shop domestically but can afford to buy stuff from Amazon, just got stiffed again.
Now, to show how generous they are with money that isn’t theirs, the CoL has ordered employers to pay their workers on the minimum wage more, without caring how that affects employers or their businesses. Again, very little reporting from media on the impact it would have on employers who will actually be paying for this. So I did some sums but have left out the WFF adjustments or that productivity – and the cost of living – will increase alongside wages.
You pay 17.5% tax up to $48000. So a worker currently on the MW is paid roughly $36,816 of which $5462 goes to the government. The new MW increases to $39312 which is a rise of $2496. The tax component of this is an extra $436 to the CoL, on top of the $5462 they already get, and also any GST on stuff that extra money will buy.
The CoL and certain media were celebrating that this would put an extra $40 in your pocket a week – before tax. That may be so, but they completely left off the bit that employers didn’t get a choice and that these same employers are being forced, through this increase, to give more of their money to the CoL in what is a bit of a ‘tax-go-round’ dressed up in a mirage of ‘everyone being better off’.
Enter into the mix the Living Wage Campaign who want everyone to be paid more than the government minimum. The Living Wage rate is voluntary and for 2019 is $21.15, $3.45 more than the minimum wage set by the Government – at least until next year when the Minimum Wage goes up and so will the mythical Living Wage proportionally. All paid for by other people which is why I guess the CoL, union commies, Gunts and leftie councils with pockets full of ratepayer cash love it so much; a social campaign which actually has no official standing digging their hands into your pockets. No wonder their website shows them wearing red t-shirts.
The media only ever put a glossy spin on this rort and none of the downsides like potential job losses and business closures, downsizing or buying machines to replace workers, but I guess they keep those stories for another day when the impact will be greatest. The Media Party need to get back to basics, do the proper objective research and then report the facts without the fluffy feelz.