Tax cuts for the rich, tax increase for the poor, welcome to Daddy State
Plenty of tax options, but none of them easy
When the Government crafts a package of tax reform its options will be limited by two big constraints. One is fiscal: the self-imposed need for the package to be broadly revenue-neutral overall, which inevitably means it is an exercise in robbing Peter to pay Paul The other is the need for it to be seen as reasonably fair and equitable.
R-I-G-H-T. Let's have a wee kick around on this shall we? The Tax Working group, made up of rich old white men have decided to lower the tax rates on the wealthy by increasing GST. Huh? The argument being used is that rich people put their money in trusts and actually end up paying much lower rates of tax, SO we need to lower the tax threshold and increase GST for all of us to make the change 'neutral'.
Ummmmmmmm - how about another idea, how about we raise the tax on trusts rather than lower the tax rate altogether? How can an argument which is "Hey 100 of the richest NZers dodge tax via trusts, so let's make everyone else pay 2.5% more in GST' stand up? Oh, let me guess, how many of the all white rich male tax working party have trusts?
While we are talking economy - isn't it nice that the Government won't release the number of NZers unemployed as a percentage now we are getting close to breaching the 7% threshold our merchant banking John Key said he was optimistic we wouldn't go over?
Unemployment up 13pc and likely to keep rising
The number of people on the dole rose 13 per cent in December and the Government says it will keep rising. There were 66,328 people receiving the unemployment benefit at the end of December, up from 58,541 in November. It is more than twice the number of December 2008.
Perhaps these 2500 people lining up for 150 jobs hadn't heard that the recession was over?
The double dip recession is only starting, just because NZers have had plenty of sun over the Summer doesn't mean all the problems disappeared, simply being optimistic for the sake of positivity is more akin to a plot line in 'The Office' than a strategy for running the country.
John Key's aspiration is looking more and more like an empty spin line.