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<channel>
	<title>Red Alert &#187; GST</title>
	<atom:link href="http://blog.labour.org.nz/tag/gst/feed/" rel="self" type="application/rss+xml" />
	<link>http://blog.labour.org.nz</link>
	<description>A blog written by Labour MPs</description>
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			<item>
		<title>Addicted to Food</title>
		<link>http://blog.labour.org.nz/2011/12/30/addicted-to-food/</link>
		<comments>http://blog.labour.org.nz/2011/12/30/addicted-to-food/#comments</comments>
		<pubDate>Fri, 30 Dec 2011 03:41:14 +0000</pubDate>
		<dc:creator>Iain Lees-Galloway</dc:creator>
				<category><![CDATA[health]]></category>
		<category><![CDATA[addiction]]></category>
		<category><![CDATA[cost of healthcare]]></category>
		<category><![CDATA[food]]></category>
		<category><![CDATA[GST]]></category>
		<category><![CDATA[Obesity]]></category>
		<category><![CDATA[Tax]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=33431</guid>
		<description><![CDATA[Perhaps it&#8217;s just because Christmas overeating is still heavy on my mind (and other body parts) but I&#8217;ve noticed there seems to have been a lot of discussion about causes of and suggested solutions to obesity over the last few days.
Waikato University scientist, Dr Pawel Olszewski suggests sugar and fat may produce changes in the brain which resemble the [...]]]></description>
			<content:encoded><![CDATA[<p>Perhaps it&#8217;s just because Christmas overeating is still heavy on my mind (and other body parts) but I&#8217;ve noticed there seems to have been a lot of discussion about causes of and suggested solutions to obesity over the last few days.</p>
<p>Waikato University scientist, Dr Pawel Olszewski <a href="http://www.stuff.co.nz/life-style/food-wine/6193706/Tasty-foods-linked-to-addiction/">suggests</a> sugar and fat may produce changes in the brain which resemble the effects of addictive drugs. This may have a profound impact on the way governments, health practitioners and communities plan to combat the impact of the growing incidence of obesity.</p>
<p>We must be careful, though, not to directly equate sugar and fat, which our bodies need, to nicotine, alcohol, THC, amphetamines etc which we can quite happily do without:</p>
<blockquote><p>Dr Olszewski says that while the brain responds to tasty foods in ways that have a lot in common with its reaction to drugs, he stresses there is a clear distinction between the complex mix of substances found in foods and a single compound such as morphine or nicotine. For this reason he describes over-eating patterns as &#8220;addictive-like&#8221;.</p>
<p>&#8220;We don&#8217;t want to send the message that if you&#8217;re eating a sandwich, that you&#8217;re consuming a drug. However palatable, high-sugar foods very often increase activity of the same brain circuits that are involved in the creation of the addictive state.</p>
<p>&#8220;So we believe this addictive-like behaviour stems from the effect that nutrients, in particular sugar and to some extent fat, have on the same set of brain areas that drive addiction.&#8221;</p></blockquote>
<address style="text-align: left;"><span style="font-style: normal;">Tony Falkens</span><span style="font-style: normal;"><span style="font-style: normal;">t</span>ein, <span style="font-style: normal;">c</span></span><span style="font-style: normal;">hief executive of Just Water International, </span> <span style="font-style: normal;">made the connection and took it to a seemingly logical conclusion by <a href="http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&amp;objectid=10775349">suggesting a sugar tax</a>. (Which, of course, would benefit his company). </span></address>
<address style="text-align: left;"></address>
<address style="text-align: left;"><span style="font-style: normal;">This drew a thoughtful <a href="http://www.macdoctor.co.nz/2011/12/27/sugar-sickness/comment-page-1/#comment-18231">rebuttal </a>from Dr Jim McVeagh at MacDoctor:</span></address>
<blockquote><p><span style="font-style: normal;">Immediately one can see the absolute pointlessness of a sugar tax. Potatoes, white bread, rice and pasta become sugar in the body as fast as pure cane sugar and nearly as fast as glucose powder. Taxing sugar is like sticking your finger in the dyke when the tsunami alarm has just gone off. And taxing carbohydrates in general is just adding a tax to nearly all food.</span></p></blockquote>
<address style="text-align: left;"><span style="font-style: normal;">I&#8217;m inclined to agree that taxing sugar is pointless and taxing fat just becomes ridiculously complex as you attempt to define &#8216;good&#8217; and &#8216;bad&#8217; fats.</span></address>
<address style="text-align: left;"></address>
<address style="text-align: left;"><span style="font-style: normal;">As Jim McVeah says,</span></address>
<blockquote><p><span style="font-style: normal;"><span style="font-style: normal;"> </span>all that causes obesity is taking in more calories than you burn up.</span></p></blockquote>
<address style="text-align: left;"><span style="font-style: normal;">So i</span><span style="text-align: left;"><span style="font-style: normal;">f an excise-type tax were to be used in an attempt to curb obesity, the only logical approach I can think of is for it to be based on calorie density. Extremely calorie dense foods tend to be those that we ought only to eat occasionally although I expect there will be exceptions. </span></span><span style="font-style: normal;">A similar  effect could be achieved by taking GST off  low-calorie density foods. </span><span style="font-style: normal;">Both approaches have flow-on consequences that would have to be thought through before suggesting that either is worth implementing.</span></address>
<p><span style="font-style: normal;">Add to the mix </span><a style="font-style: normal;" href="http://www.mediplacements.com/article-801250650-mother_toddler_relationship.html">research released</a><span style="font-style: normal;"> from Ohio State University this week that shows the attachment between mothers and toddlers is linked with incidence of obesity and you quickly get the picture that obesity is not straight forward and solutions will be neither singular nor simple.</span></p>
<p><span style="font-style: normal;">Obesity is a significant driver of the increasing cost of healthcare and therefore cannot be ignored. Developing prevention and treatment strategies is the responsibility of governments as much as it is the responsibility of parents, communities and individuals.</span>
<div class="tw_button" style=";float:left;margin-right:10px;"><a href="http://twitter.com/share?url=http%3A%2F%2Fblog.labour.org.nz%2F2011%2F12%2F30%2Faddicted-to-food%2F&amp;text=&amp;related=&amp;lang=&amp;count="  class="twitter-share-button" target="_blank" style="width:55px;height:22px;background:transparent url('http://blog.labour.org.nz/wp-content/plugins/wp-tweet-button/tweetn.png') no-repeat  0 0;text-align:left;text-indent:-9999px;display:block;"></a></div>
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		<slash:comments>28</slash:comments>
		</item>
		<item>
		<title>Flashback &#8211; Key on GST rise</title>
		<link>http://blog.labour.org.nz/2011/11/01/flashback-key-on-gst-rise/</link>
		<comments>http://blog.labour.org.nz/2011/11/01/flashback-key-on-gst-rise/#comments</comments>
		<pubDate>Tue, 01 Nov 2011 00:47:05 +0000</pubDate>
		<dc:creator>Grant Robertson</dc:creator>
				<category><![CDATA[#ownourfuture]]></category>
		<category><![CDATA[broken promises]]></category>
		<category><![CDATA[GST]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=32543</guid>
		<description><![CDATA[
To help refresh memories, here is exactly what John Key said on GST before the last election. Personally I don&#8217;t think there is any room for nuance here. He said he would not increase it, and he did.
]]></description>
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<p>To help refresh memories, here is exactly what John Key said on GST before the last election. Personally I don&#8217;t think there is any room for nuance here. He said he would not increase it, and he did.
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		<slash:comments>24</slash:comments>
		</item>
		<item>
		<title>Carmel talks about the cost of living</title>
		<link>http://blog.labour.org.nz/2011/08/21/carmel-talks-about-the-cost-of-living/</link>
		<comments>http://blog.labour.org.nz/2011/08/21/carmel-talks-about-the-cost-of-living/#comments</comments>
		<pubDate>Sun, 21 Aug 2011 06:28:30 +0000</pubDate>
		<dc:creator>Chris Hipkins</dc:creator>
				<category><![CDATA[#ownourfuture]]></category>
		<category><![CDATA[Cost of Living]]></category>
		<category><![CDATA[GST]]></category>
		<category><![CDATA[Tax]]></category>
		<category><![CDATA[Election 2011]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=30481</guid>
		<description><![CDATA[
]]></description>
			<content:encoded><![CDATA[<p><iframe width="500" height="311" src="http://www.youtube.com/embed/sQkUp3PtVto" frameborder="0" allowfullscreen></iframe>
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		<slash:comments>11</slash:comments>
		</item>
		<item>
		<title>Families struggle as food prices go up</title>
		<link>http://blog.labour.org.nz/2011/07/13/families-struggle-as-food-prices-go-up/</link>
		<comments>http://blog.labour.org.nz/2011/07/13/families-struggle-as-food-prices-go-up/#comments</comments>
		<pubDate>Tue, 12 Jul 2011 23:41:30 +0000</pubDate>
		<dc:creator>Raymond Huo</dc:creator>
				<category><![CDATA[asian]]></category>
		<category><![CDATA[Cost of Living]]></category>
		<category><![CDATA[GST]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=29228</guid>
		<description><![CDATA[Hard working Kiwi families have been struggling to keep up with the increasing cost of living under the National Government, and as the cold of winter bites, power bills aren’t the only things up with food prices increasing.
According to Statistics New Zealand, food prices rose up 1.4 per cent in June over May, and annually, [...]]]></description>
			<content:encoded><![CDATA[<p>Hard working Kiwi families have been struggling to keep up with the increasing cost of living under the National Government, and as the cold of winter bites, power bills aren’t the only things up with food prices increasing.</p>
<p>According to Statistics New Zealand, food prices rose up 1.4 per cent in June over May, and annually, food prices are up 7.5 per cent on a year earlier.</p>
<p>Fruit and vegetables have been hardest hit in June, rising 12.2 per cent. Tomatoes were up a staggering 56.9 per cent over their price in May, with lettuce and capsicum also up over 40 per cent on the previous month.</p>
<p>Labour promised to take GST off fruit and vegetables. If this policy were introduced the price of fresh fruit and vegetables would fall dramatically. Not only would Kiwi families have a cheaper grocery bill, but they would also have a healthier lifestyle.</p>
<p>It seems that hard-working kiwi families are being hit everywhere. GST rises, working for families’ cuts, kiwi saver cuts and arbitrary employment laws (90 day fire-at-will) mean that Kiwis are on tenterhooks as the costs mount during winter, a time when doctor visits are essential and power bills naturally increase.</p>
<p>When will the National Government give hard-working Kiwi’s a break?
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		<slash:comments>42</slash:comments>
		</item>
		<item>
		<title>Long Term Effects</title>
		<link>http://blog.labour.org.nz/2011/04/05/long-term-effects/</link>
		<comments>http://blog.labour.org.nz/2011/04/05/long-term-effects/#comments</comments>
		<pubDate>Tue, 05 Apr 2011 03:22:46 +0000</pubDate>
		<dc:creator>Iain Lees-Galloway</dc:creator>
				<category><![CDATA[health]]></category>
		<category><![CDATA[Cost of Living]]></category>
		<category><![CDATA[GST]]></category>
		<category><![CDATA[mental health]]></category>
		<category><![CDATA[Otago University]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=26010</guid>
		<description><![CDATA[Yesterday Otago University released data linking the increasing unaffordability of food with deteriorating mental health.
It’s a very good example of the need to consider the long term effects of government policy. Yes, we all understand that putting GST up without proper compensation for people on middle and low incomes is making life harder for kiwi [...]]]></description>
			<content:encoded><![CDATA[<p>Yesterday Otago University released data linking the <a href="http://tvnz.co.nz/health-news/more-kiwis-experiencing-food-stress-4100020">increasing unaffordability of food with deteriorating mental health.</a></p>
<p>It’s a very good example of the need to consider the long term effects of government policy. Yes, we all understand that putting GST up without proper compensation for people on middle and low incomes is making life harder for kiwi families right now, but the long term effects are much more concerning.</p>
<p>National’s policies have not only increased inequalities, they are creating a problem for future governments by failing to keep people well and increasing future demand on all health services including mental health.</p>
<p>It might not be of much concern to John Key and co because it won’t be their problem. But someone will have to deal with it and we’d all be a lot better off (financially and socially) if we prevented the problem when we can see it coming rather than waiting for someone else to clean up the mess.
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		<item>
		<title>Tax Swindle Leaves 38% in Waikato worse off</title>
		<link>http://blog.labour.org.nz/2010/10/18/tax-swindle-leaves-38-in-waikato-worse-off/</link>
		<comments>http://blog.labour.org.nz/2010/10/18/tax-swindle-leaves-38-in-waikato-worse-off/#comments</comments>
		<pubDate>Sun, 17 Oct 2010 20:57:10 +0000</pubDate>
		<dc:creator>Sue Moroney</dc:creator>
				<category><![CDATA[Cost of Living]]></category>
		<category><![CDATA[Hamilton]]></category>
		<category><![CDATA[Uncategorized]]></category>
		<category><![CDATA[economy]]></category>
		<category><![CDATA[inequality]]></category>
		<category><![CDATA[polling]]></category>
		<category><![CDATA[waikato]]></category>
		<category><![CDATA[GST]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=21395</guid>
		<description><![CDATA[So says the front page of Saturday&#8217;s Waikato Times, after they polled 180 readers on the subject.
only 12% felt they were any better off, 38% worse off and 33% unchanged. Some readers said John Key has lost their vote over the GST increase.
And just to show how out of touch those on big incomes are with reality, [...]]]></description>
			<content:encoded><![CDATA[<p>So says the front page of Saturday&#8217;s Waikato Times, after they polled 180 readers on the subject.</p>
<p>only 12% felt they were any better off, 38% worse off and 33% unchanged. Some readers said John Key has lost their vote over the GST increase.</p>
<p>And just to show how out of touch those on big incomes are with reality, a partner of Deloitte Hamilton says people just had to &#8220;reprioritise.&#8221;</p>
<p>&#8220;You can choose whether or not to spend money and therefore pay tax,&#8221; he said.</p>
<p>Really? Choose not to buy groceries, pay the power bill, pay for petrol, pay the rent? This man has no idea that low and middle-income families spend all they earn on just getting by.</p>
<p>His out-of-touch comments reflect arrogant National Party thinking. Guess he must be in the 12% laughing at the expense of the other 88%.
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		</item>
		<item>
		<title>As you do the Saturday shopping</title>
		<link>http://blog.labour.org.nz/2010/10/02/as-you-do-the-saturday-shopping/</link>
		<comments>http://blog.labour.org.nz/2010/10/02/as-you-do-the-saturday-shopping/#comments</comments>
		<pubDate>Fri, 01 Oct 2010 20:30:42 +0000</pubDate>
		<dc:creator>Grant Robertson</dc:creator>
				<category><![CDATA[Cost of Living]]></category>
		<category><![CDATA[GST]]></category>
		<category><![CDATA[Tax]]></category>
		<category><![CDATA[broken promises]]></category>
		<category><![CDATA[John Key]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=20848</guid>
		<description><![CDATA[You saw it here first (well not quite first, but for the first time after the election), so a reminder as you look at the bill from shopping this morning that National campaigned explicitly not to increase GST. 

]]></description>
			<content:encoded><![CDATA[<p>You saw it <a href="http://blog.labour.org.nz/index.php/2010/02/10/national-is-not-going-to-be-raising-gst/">here first</a> (well not quite first, but for the first time after the election), so a reminder as you look at the bill from shopping this morning that National campaigned explicitly not to increase GST. </p>
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		<item>
		<title>The Tax Switch/Swindle</title>
		<link>http://blog.labour.org.nz/2010/09/26/the-tax-switchswindle/</link>
		<comments>http://blog.labour.org.nz/2010/09/26/the-tax-switchswindle/#comments</comments>
		<pubDate>Sun, 26 Sep 2010 01:11:35 +0000</pubDate>
		<dc:creator>Grant Robertson</dc:creator>
				<category><![CDATA[Cost of Living]]></category>
		<category><![CDATA[GST]]></category>
		<category><![CDATA[Tax]]></category>
		<category><![CDATA[economy]]></category>
		<category><![CDATA[inequality]]></category>
		<category><![CDATA[tax switch]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=20713</guid>
		<description><![CDATA[The last few days in the electorate have been marked by an increasing number of people, of all political persuasions working out that the tax switch is going to see them no better off, and in many cases worse off.  The GST increase, and the associated price increases are top of mind.  In [...]]]></description>
			<content:encoded><![CDATA[<p>The last few days in the electorate have been marked by an increasing number of people, of all political persuasions working out that the tax switch is going to see them no better off, and in many cases worse off.  The GST increase, and the associated price increases are top of mind.  In Wellington 6% increases in power bills and the increasing costs of bus travel will wipe out the meagre tax cut benefits for those on low to middle incomes.  Everything from the increased cost of rates, rents, stamps and food have also been raised with me.</p>
<p> The NZ Herald had a <a href="http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&#038;objectid=10675902">feature story</a> on this yesterday as well, and the experience of the family who have had the benefit of tax cuts wiped out by the government&#8217;s funding cut to early childhood education is another commonly raised issue.</p>
<p>The <a href="http://www.stuff.co.nz/sunday-star-times/news/4168248/GST-to-gobble-up-part-of-tax-cut-boon">Sunday Star Times story</a> today, though, makes clear the real problem with the tax switch</p>
<blockquote><p>The real winners from the cuts are people earning more than $70,000 a year. Anyone earning $100,000, for instance, can expect nearly $70 more in their pay, making them $42 better off after paying that extra GST. For low income earners, the impact is marginal. Someone on $20,000 will be nearly $3 better off, while someone on $30,000 will be $6 richer.</p></blockquote>
<p>No wonder John Key has instructed his MPs to try to sell the tax switch.  The problem is people know their own budgets and costs, and no amount of spin will change that.</p>
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		<title>Why should we believe you John Key?</title>
		<link>http://blog.labour.org.nz/2010/09/22/why-should-we-believe-you-john-key/</link>
		<comments>http://blog.labour.org.nz/2010/09/22/why-should-we-believe-you-john-key/#comments</comments>
		<pubDate>Wed, 22 Sep 2010 03:01:13 +0000</pubDate>
		<dc:creator>Clare Curran</dc:creator>
				<category><![CDATA[economy]]></category>
		<category><![CDATA[GST]]></category>
		<category><![CDATA[honesty]]></category>
		<category><![CDATA[John Key]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=20514</guid>
		<description><![CDATA[John Key is starting to trip himself up. In parliament in question time today he was asked to confirm whether he said before the election he would not increase GST. He said &#8220;I had no intention of increasing GST&#8221;. In other words: well I didn&#8217;t want to increase it but I&#8217;ve had to.
Well watch the video for [...]]]></description>
			<content:encoded><![CDATA[<p>John Key is starting to trip himself up. In parliament in question time today he was asked to confirm whether he said before the election he would not increase GST. He said &#8220;I had no intention of increasing GST&#8221;. In other words: well I didn&#8217;t want to increase it but I&#8217;ve had to.</p>
<p>Well watch the video for yourself. Again.</p>
<p>Did he say &#8220;National is not going to be <span style="text-decoration: line-through;">increasing</span> raising GST&#8221; or did he say &#8220;I have no intention of raising GST&#8221;?</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="500" height="304" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/yxpwt5s4rLY?fs=1&amp;hl=en_US" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="500" height="304" src="http://www.youtube.com/v/yxpwt5s4rLY?fs=1&amp;hl=en_US" allowfullscreen="true" allowscriptaccess="always"></embed></object>
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		<title>Cost of living goes through the roof</title>
		<link>http://blog.labour.org.nz/2010/07/27/cost-of-living-goes-through-the-roof/</link>
		<comments>http://blog.labour.org.nz/2010/07/27/cost-of-living-goes-through-the-roof/#comments</comments>
		<pubDate>Tue, 27 Jul 2010 04:50:22 +0000</pubDate>
		<dc:creator>Raymond Huo</dc:creator>
				<category><![CDATA[asian]]></category>
		<category><![CDATA[ets]]></category>
		<category><![CDATA[GST]]></category>

		<guid isPermaLink="false">http://blog.labour.org.nz/?p=18148</guid>
		<description><![CDATA[
I thought I would share this response to some questions we have asked in the community with Red Alert readers.
The loose translation of the Chinese text is:
Dear MP Huo, Thank you for your Labour Party who always speaks on behalf of ordinary kiwis, particularly at a time when the cost of living is increasing dramatically, [...]]]></description>
			<content:encoded><![CDATA[<p><img class="aligncenter size-large wp-image-18149" title="LabourSurvey pic 27July10" src="http://blog.labour.org.nz/wp-content/uploads/2010/07/LabourSurvey-pic-27July10-500x154.jpg" alt="LabourSurvey pic 27July10" width="500" height="154" /></p>
<p>I thought I would share this response to some questions we have asked in the community with Red Alert readers.</p>
<p>The loose translation of the Chinese text is:</p>
<p><em>Dear MP Huo, Thank you for your Labour Party who always speaks on behalf of ordinary kiwis, particularly at a time when the cost of living is increasing dramatically, well done, we support you.</em> (name and address withheld)</p>
<p>This constituent echoes the thoughts and feelings of many families across the country.</p>
<p>It is concerning for everyone in the community that prices are rising faster than wages, and with an increase in GST coming into effect shortly, this situation is only going to get worse.</p>
<p>With inflation expected to hit 5.9 percent next year, it seems there is no let up for hard working kiwis either.</p>
<p>Any tax cuts should make it easier for more kiwis to get ahead. However, National’s tax plan gives most of the tax cuts to the privileged few. But, 70 percent of salary and wage-earners are on $40k or less, with 800,000 kiwi families with a combined household income of $60k or less.</p>
<p>Under National, transport prices rose 3.1 percent with higher prices for International air transport and vehicle licensing fees.</p>
<p>Cost of food is increasing with a recent OECD study finding that New Zealand food prices over the last 10 years rose higher than almost any other of the 30 OECD countries studies, at 42% compared to the OECD average of 33%.</p>
<p>Under National’s ETS, families pay twice – once as consumers and once as tax-payers ($110 billion over the next 2-3 decades) while polluters get an easy ride.
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