Friday, November 12, 2004
The Tax Debate
There is not much to add to the tax debate currently circulating - other than to say that Cullen and co may have to take some medicine and consider returning some cash to those that actually earnt it in the first place. Rodney Hide is leading the charge and sums it up thus:
Re-crunched figures supplied by Treasury on changes to household incomes and taxes dig the Finance Minister into a deeper hole, confirming that Kiwi households have been harder hit in real terms under Labour than even I initially thought, ACT New Zealand Leader Rodney Hide said today.My Right has one question - where the fuck is John Key and National?!?!? Key started quite well as Finance Spokesman when he revealed the effective marginal tax rates under Labour immediately after the last budget. But as it was with the JT golden handshake, Act are setting the agenda, and scoring hits.
"Dr Cullen's new figures were compiled hastily by Treasury in an attempt to save the Minister's face over earlier data, he signed out, that showed cuts in nominal net incomes," Mr Hide said.
"I waited for the better news but unfortunately it didn't come - in fact, quite the opposite. The new figures reveal that the average Kiwi household is $1,740 a year worse off, with Labour's extra taxes swallowing up two-thirds of the increase in household income between 2000 and 2004.
"Dr Cullen is right when he says the figures only tell half the story. The 6 percent increase in net income must be offset by inflation. However, under Labour, inflation was at 10.4 percent from 2000-04. The fact is that a dollar today just doesn't buy what it did when Labour took office.
"Inflation and higher taxes have squeezed hardworking Kiwis, meaning in real terms, the average household is nearly 4 percent worse off over the last four years.
Key was quoted in a Dominion article a couple of days ago - but the even that had the edge taken off it:
National's finance spokesman John Key said the figures meant taxpayers were forking out $8m more every day.Key should be on this like white on rice - instead some garrulous figures and not much more. The fact that National have not announced there tax policy left the door open for the slightly churlish reporter to make National appear impotent on the tax front.
"The tax bucket is so full even (Progressive Party leader) Jim Anderton thinks it's time to cut taxes," he said.
"Many families are struggling to make ends meet under this high-tax, anti-family Government – not that it appears to care," Hide said.
The ACT leader pledged to cut top personal and company rate to 20c in the dollar.
National has yet to announce its tax policy.
Whatever the reasons for 'keeping the powder dry' - National should be landing punches - at the moment My Right is not even seeing a solid jab.
