According to Stuff:
National ally the Maori Party is nervous, however. MP Rahui Katene said the party was retaining the option of walking away from its confidence and supply agreement with National over a GST rise.
Good for the Maori Party. It knows only too well that a rise in GST will hit everyone, not just those who might get an income tax cut. Being seen to support an increase in the price of everything to offset tax cuts that may be seen to be for those on higher incomes could cost the Maori Party dearly.
However what about ACT?
Jane Clifton reports Rodney Hide saying:
"The new fiscal programme had only been made possible because of ACT, he said, and he would therefore like to thank all ACT's supporters, his fellow MPs and the members of other caucuses with whom ACT had worked so tirelessly to bring about much-needed reform."
Roger Douglas has rightly said "The spending cuts must come first. Once we have cut spending, then we can cut taxes. If we want to make the tax system more efficient, we need constitutional restraints against excessive levels of Government expenditure. It is only when we have stopped the Government from exploiting the taxpayer that we can aim for efficiency"
So it's view is clear then...?!?!
ACT either makes it clear it votes against this, and tells the Nats a flat no, or the government is brought down.
Or ACT votes for it, and risks splitting asunder.
The test is simple - is ACT a party that people voted for so that government could cut one tax but increase another?