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When is a struggling Kiwi really a struggling Kiwi

by Whaleoil on August 9, 2010

Labour it seems have put their mis-leading GST brochure out around the country. I blogged on it in regard to Ruth Dyson advocating the complete removal of GST, it now looks like the whole of Labour are advocating that.

Worse though is one of their little stories about a struggling Kiwi family failing to make ends meet.

Lying Labour fails to disclose details

Lying Labour fails to disclose details

Do you think Labour knew that the hardworking everyday Pacific Island family featuring one Mote Pahulu… is the same Mote Pahulu standing for the Manurewa Action Team ticket, the same ticket that also features George Hawkins in the supercity elections. I wonder too if he is the same Mote Pahulu who is also on the Wiri Licensing Trust, presumably earning meeting fees for his work there.

Why don’t Labour declare fully affliations of people in their brochures. Mote Pahulu is not some random islander they picked off the street, he is a Labour activist reading rehearsed lines on command.

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  • abjv

    On $90.25 the tax is presently $11.28. The figure shown above is the total tax, not the increase.

    The increase is $2.26 which is what they will be paying extra. Maybe they might like to give up their tax cuts, their working for families, the health and education services, the superannuation their olds are under, and not have to pay the exta $2.26 per week.

  • workingman

    abjv

    The correct figures are that the current tax is $10.03, and that the new tax amount will be $12.03 giving a total of $92.25, so an increase of $2.00. Where their figure of $13.54 comes from I can only guess, but it looks fairly simple.

    They calculated the current GST as 12.5% of $90.25, which equals $11.28 (where your figure comes from I am assuming), then they are adding 2.5% to the $90.25, which equals $2.25. $11.28 + $2.25 = $13.53.

    When working out the amount of GST in a price you cannot just subtract 12.5%, as the 12.5% is calculated on the amount excluding tax. The full calculation would be (90.25/112.5)*100 = 80.22. So the current GST is $10.03. A simpler method is to divide the price by 9. 90.25/9 = 10.03.

    So not only do we have suspect people on brochures, we have the Labour party not able to perform correct calculations. Of course that is never a surprise.

  • abjv

    workingman…

    Yeah. Completely correct. I’ve had about 8 hours sleep in the last 4 days so the brain is a bit fuzzy. My point doesn’t change – they’re going around trying to pin the entire tax content on Key when the increment is $2 – less than a packet of fags – and most of the present the tax was put there by Labour in the first place.

    Also, Cunliffe is right – wages will go backwards if you factor in inflation, ACC and don’t factor in the tax cuts designed to compensate.

    I wonder wy he didn’t mention emissions trading while at it – the one that does hurt. Come to mention it, Carter didn’t list the Greens when he was discussing potential coalition partners for Labour. They’re not thinking Green. Do I sense a divorce coming up? Or someone being taken for granted (again)?

  • grizz

    Workingman,

    You have stolen my point. I thought the maths was wrong and came up with the same calculations.(Labour really needs to check their publications for accuracy or else they just look silly. If they cannot demonstrate high school level algebra, they certainly cannot be trusted to run the country’s finances). To calculate the tax increase simply multiply the price by 2.22% or just 1.022. (1.15/1.125 =1.0222). What is not stated in this brochure is the increase in benefits and tax cuts to cover the GST increase. It also does not mention the likely GST increase with Labour’s harsher and even more pointless ETS!

    Yes, More political bullshit and lies from Labour.