Friday, 23 July, 2004

Critics miss point in GST and rates debate

Critics of United Future's proposal to remove GST on rates have missed the point, according to the party's revenue spokesperson Gordon Copeland.

"The point is that GST should never have been applied to rates in the first place because it is a tax on a tax.

"On the very day my bill to remove GST on rates was drawn from the ballot, as Deputy Chair of Parliament's Finance and Expenditure Committee I was meeting with the Australian Parliament's Committee on Economics, Finance And Public Administration and we were talking about taxes and rates. I asked whether GST was applied to rates in Australia and quickly received the answer "No - because that would amount to a tax on a tax."

"That is the simple point at issue here. If anyone wants to argue that rates are not a tax I say let them speak to, for example, the elderly woman in Takapuna who although housebound faces an annual tax bill of more that $6,000.

"Let them speak to the business community in New Zealand who are very concerned that they are bearing a disproportionate share of rates.

"Let them speak to farmers round the country who say that their rates are manifestly excessive.

"In all of these circumstances those involved are saying that their rates bear no relation whatever to the services provided to them by the local authorities. In other words, they are a tax.

"It is incumbent therefore on the opponents of my bill to come with an argument as to why central government should levy a tax (the GST) on a tax (rates) levied by local authorities. They won't be able to do that because clearly this is wrong in principle as has been recognised, not only by the Australians but also by the Canadians. There is no way you can justify the unjustifiable."

ENDS

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Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>