Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Taxes Up – And Then No Money!

Tax cuts! Michael Cullen has failed to deliver on the one thing that could boost the economy and put more money into the pockets of working people. “We are now out of step with the US and Australia who are both cutting taxes.

“Last year, he put taxes up. This year he has run out of money – exactly as predicted. The government is now so cash-strapped that its resorted to bouncing cheques and changing tax laws to claim tax back to 1986. That’s a desperate predicament.

“The biggest ‘spend-up’ in this Budget is $2,559 million over four years – that’s the forecast drop in tax revenue since the December Update (Table 3-4, p.78, B2&B3). It’s now official – Cullen’s tax hike produced less tax! The surplus for the coming year has been pegged back nearly $1 billion.

The country needed a Budget that celebrates business and entrepreneurship. Instead the Labour-led government has delivered a ‘plodder’s Budget’ without vision or direction. “Michael Cullen’s spin is that the Budget is fiscally prudent while he trumpets $692 million sprinkled about over four years.

“These dollars don’t add up to a strategic direction for the country. The problem is that Cullen hiked taxes, spent up last year, and now he’s struggling. He should have done what other countries have done and cut taxes and grown the economy.

“He’s had the opportunity. His $6 billion three-year spend-up is enough to halve the company rate of tax. That would give a major boost to business in New Zealand. Even if he had split the money between spending it himself and giving it back to taxpayers, we could have had a major tax cut. That would be a boost to business, help our competitiveness, and put money into workers’ pockets.

“Last year’s goal of ‘Closing the Gaps’ was hastily abandoned. I predict that this year’s goal of ‘Economic Transformation’ will likewise soon face the chop. It will prove just as elusive.

“The government is heading the country in the exact opposite direction to the one required to transform New Zealand into a high-growth, high-wage productive economy. We are now completely out of step with best practice in the rest of the developed world,” Mr Hide said.

“The Labour-led government is:

* Re-regulating, not deregulating. Employers must now negotiate collective contracts through third-party unions and meet vague ‘good faith’ provisions;

* Re-nationalising, not privatising. The Accident Insurance Industry has been re-nationalised, privatisation of TVNZ and NZ Post has been abandoned;

* Increasing expenditure, not cutting it. The $5 billion NZ First extra spending has been topped by another $6 billion;

* Increasing taxes, not cutting them. The top rate was hiked to 39 cents, $100 million in tobacco tax, roll-back of tariffs and a $200 million retrospective GST grab;

* Expanding welfare , not curtailing it. Income related rents favour those in a state house over private accommodation, student loans favour rich students as well as poor, pensions have increased at the expense of the young.

“The Government’s prescription can be summarised as more state direction and less personal freedom,” Mr Hide said.

“The result is that the outlook is for New Zealand to be piddling along at 2.5 percent or so growth when we should be striving towards 5 percent or more. We have hit 5 percent before. We need to do so again. Otherwise, we are destined to see our relative standard of living continue to slide.

“Labour and the Alliance along with the Greens have turned their back to the free market and to private enterprise. The result is now becoming sadly all too plain to see,” Mr Hide said.

ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news