Reasons against GST off food are elitist crap

The elitist bullshit being vomited up by well fed academics as to why we can’t remove GST off fresh food so that the crippling prices caused by the greedy Supermarket Duopoly are eased amount to ‘let them eat cake’.

Removing GST on food is back in the news, proving some bad ideas just never go away

Sacrificing simplicity

But the beauty of New Zealand’s tax system is its simplicity. Removing GST on food, or some types of food – for example, “healthy food” – makes that system more complex and costly.

There are a number of potential complications.

Let’s start with the obvious – what would count as “food”? Is milk powder food? Probably yes, so what about milk? Or flavoured milk? Oranges are food, so what about 100% natural orange juice? A broad definition of “food” would include lollies, potato chips, McDonalds and KFC, but many would object to removing GST from these on health grounds.

We would then need to decide what is acceptable to exempt and what is not. The arguments would go on and on.

…who gives a fuck?

Hungry Kiwis are scrounging for food, and this academic is wanking on about the need to keep things simple for the purity of Adam Smiths free market architecture?

Get fucked!

Australian supermarkets already remove GST from food and seeing as one of our entire Supermarket duopolies is Australian owned, I’m sure they’ll manage.

Simplicity for your precious tax system doesn’t trump hungry people needing cheaper food!

Next bullshit reason…

Food costs won’t drop that much

Exempting some things and not others adds cost to the system.

Food outlets sell more than just food. With the proposed exemptions some things they sell will be subject to GST and some not. Some predominantly non-food outlets such as petrol stations also sell food.

Ultimately, someone has to pay the cost of complexity and the ones most happy about that will be the accountants.

Another issue is one of expectations. Food prices will drop but not by the full amount of GST. Basic economics teaches us that when something is taxed, producers and consumers share the burden of that tax.

…don’t care, take the tax off.

Next bullshit reason…

Alternative solutions

The working group explained that if the goal was to support those on low incomes, and the government was willing to give up the GST revenue from food, then it would be better to continue to collect the GST and simply refund it via an equal lump sum payment to every New Zealand household or taxpayer.

…let me see if I can get this completely fucking straight.

It’s IMPOSSIBLE to remove GST off food because it’s too complex, but it’s just really simple for everyone else to fill out their tax returns and get some credit at the end of the year?

Fuck off.

Poor people have seen how you claw back and gerrymander the game so that you don’t end up with anything, we want real price drops we can manage directly out of our pocket rather than your accounting torture.

The arguments against removing GST are ideological nonsense denying hungry people cheaper food.

It’s time to get angry at the manner the elites protect their rigged casino.


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