National to spin GST tax rise
Govt readying to sell GST rise
National MPs will be out in their electorates in coming days selling the Government's tax cut and GST increase package to voters before it takes effect next month.
What this GST tax rise represents is the largest transfer of wealth in recent political history from the bottom to the top. This GST tax rise is to fund a tax cut that benefits the wealthy, ie 'we' are all subsidizing tax cuts for the Sam Morgans of this world. The crumbs being left in most of our pockets won't go anywhere near making up the shortfall when other inflationary pressures are taken into account (which the Governments so called tax calculator ignore) and this is the real danger to National.
To date most NZers have given Key the benefit of the doubt, his smile and wave persona works well with our laid back culture, his story of state house immigrant boy doing good is irresistible and his non ideological evolution as a merchant banker adds to his laid back demeanor. He is maybe the first truly global political leader we've ever had who understands it isn't about pointlessly putting the boot into Unions that matter, what matters is how much dairy tonnage we sell to China. His challenge is to reign in the hard right elements of his Government, a battle he increasingly loses.
What this GST tax increase represents however is a game changer, to date NZers have 'trusted' Key because they like him and he told all of us that his tax changes would make EVERYONE better off. NZers are expecting to feel like they are living that promise, but as National strategists will have realized, if NZers don't feel better off each week they are going to blame Key and they will stop liking him and the second they stop liking him, the second they stop trusting him and his promises of being better off are going to be shown up as the vacant aspiration snakeoil it really is.
National have to sell these changes as being positive, but as NZers feel hurt week in and week out, they won't believe what the Government are telling them. Key will start to look like an out of touch boy in a bubble medicated optimist who isn't grounded in the reality of the pain everyone else is going through, this will be Labour's best chance to break the Key illusion while reminding all NZers that post 2011 National will unleash their full spectrum free market assault.
October 1st is when the rubber really hits the road and Crosby and Textor earn their invoices.