Wednesday, August 17, 2005

Shock Horror, Detailed Analysis!

After months of hyping their tax cut plans, National has over the last week or so furiously tried to downplay public expectations ahead of their announcement on Monday.

Here is a link to a very good interview between blogger Keith Ng and Michael Cullen, in which Cullen explains the fiscal realities that government has to deal with, and the impossibility of large tax cuts without equally large tax cuts or overseas borrowing.

In the middle of a sloganeering election campaign, it's nice to actually read a reasoned, detailed analysis from one of the major players. Not exactly a light read, but a good overview of Labour's fiscal strategy.


Cheezy said...

Jeepers, no comments from the feverish, reactionary, knee-jerk right wing yet?

Can it be that they've read what Cullen's had to say and pondered... "Hmmm, maybe he's got a point?"

Whaleoil said...

What point, that there is no room for tax cuts but plenty of room for tax credits!!!!!

michael wood said...

That's right Whaleoil. For National to provide the average NZ family with the level of support that Labour is, they would have to cut taxes by something like $5.2 billion. Labour's extra tax credits will cost about $400 million. They're cheaper because they don't give thousands of dollars to the super wealthy as tax cuts do.

Whaleoil said...

What is it with Socialists and their hatred of super wealthy?...and what is super wealthy anyway. People who earn $100k are NOT super wealthy...a few people I know don't even rate you unless you earn over $300k. Oh yeah and by the way most of those people pay little or no tax at least since 1999 when they said enough is enough.
Those people however employ several hundred workers who being workers get stiffed by heinous over taxation.

When will you guys also learn that reducing taxes actually INCREASES Government revenues.

There is no way in the real world you can justify that taking money from people, then playing around with it and then giving it back to them is more efficient than not taking it from them in the first place.

All this policy does is make 60,000 more Kiwi state beneficiaries lining up at WINZ with all the others.

Too Right said...

Micahel-- Nice of you to confirm how out of the loop you are. You post this while your mangy mates in Wellington are planning to bribe the electorate (only those with families mind) with a $1.6Billion tax cut package (called relief). How do you feel Mikey, being kept in the dark. Thought you were part of the inner circle eh! Exclusive access to all the press releases? While you are banging on about a $400million tax credit your trenchant boss unloads a biggy.

Be interested in a post Mikey on Labour's forecasting capability and performance. So far since the Budget they have "found" a $500Million windfall for roading and now an additional $16Billion surplus. What about the $1Billion + fuck up with the carbon credits.

Admit it Michael - spin, spin, spin, Labour are liars and will do anything to remain in power.

Only a week ago Cullen was saying there is no room for tax cuts. Yesterday by his own admission he had the Treasury forecasts three weeks ago. Cullen is a fucking liar.

Anonymous said...

$1.6bn is the total amount for the Working for Families programme.
$400m is the addition announced yesterday to the $1.2bn for the programme when first underway.
Michael is quite right.

Whaleoil? Oh dear. Wrong on the involvement of Work and Income, wrong on the claim that New Zealand is overtaxed, which according to the OECD it is not - although ironically where we are a bit higher has been on the tax burden for families (hah!)- and showing distincts signs of status anxiety when assuring us how in touch he is with the $100 000+ set.

Though if they don't "rate you" on account of not earning over $300 000, they're probably not nice to know and worthy of all the contempt the left and others can muster.....

On forecasts, dearest Too Right, what has been the case for some time now is that the economy under Labour's management - and groaning, the right never stops to assure us, under the weight of this oppressive 39c top marginal tax rate - is consistently stronger than forecast.

spooks said...

Incidentally, cutting tax is not "giving" anything to anyone, super wealthy or otherwise.

And as Spooks has said repeatedly, if you don't cut the tax of the wealth creators, they will cut it themselves -- by simply telling you to get stuffed and going elsewhere for the increasingly better standard of living, and creating wealth there instead. As they already are, at dangerously significantly numbers.

Wake up, New Zealand, before you kill the geese that are laying the golden eggs.