Parliament

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

 

National’s Tax Cuts At Heart Of Budget 'Crisis'

27 April 2012

National’s Tax Cuts At Heart Of Budget ‘Crisis’

New figures from the Parliamentary Library show the National Government’s tax cuts to the top 10 percent of income earners are costing $700 million-$800 million a year while it pleads poverty and cuts services, Green Party Co-leader Russel Norman said today.

Figures from the Crown’s Year End Financial Statements for 2010/11 show that National’s 2010 tax package cost $1.1 billion in the first nine months. The new data shows that most of that cost is due to the reduction of the 38 percent tax rate to 33 percent, which only benefited the wealthiest 10 percent of New Zealanders.

“It is wrong for the Government to cut important public services and support for people to get an education at the same time it is borrowing $800 million a year for tax cuts for the wealthy,” said Dr Norman.

“Two years ago, National told us it could afford these so-called ‘fiscally neutral’ tax cuts.

“Now, it is crying poverty and telling New Zealanders they will have to pay with cuts to services and student loans.

“National has manufactured a crisis by committing itself to an arbitrary goal of eliminating the deficit in 2014/15 while cutting revenue needed to get there.

“Did National not realise its unaffordable tax cuts for the rich would crash the budget, or did it cynically reduce government revenue to give it an excuse to cuts services in the future?

“Neither option can give New Zealanders confidence in the economic management of their government,” said Dr Norman.

Additional Information:

Summary table of cost of reducing the income tax rate over $70,000 from 38% to 33%
RESULTSEstimated $m change (from current state)Estimated cost after offset effects are taken into account ($m)
Estimated income tax - Method 1 ($m) 2010 data837708
Estimated income tax - Method 2 ($m) 2010 data797675
Estimated income tax - Method 3 ($m) 2011/12 data862729
Source: Parliamentary Library


The Green Party's alternative plan for our economy:
http://www.greens.org.nz/greenjobs

Financial Statements of the Government of New Zealand for the Year Ended 30 June 2011:
http://treasury.govt.nz/government/financialstatements/yearend/jun11/fsgnz-year-jun11.pdf



ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

New Reports: Flood Risk From Rain And Sea Under Climate Change

One report looks at what would happen when rivers are flooded by heavy rain and storms, while the other examines flooding exposure in coastal and harbour areas and how that might change with sea-level rise.

Their findings show that across the country almost 700,000 people and 411,516 buildings worth $135 billion are presently exposed to river flooding in the event of extreme weather events...

There is near certainty that the sea will rise 20-30 cm by 2040. By the end of the century, depending on whether global greenhouse gas emissions are reduced, it could rise by between 0.5 to 1.1 m, which could add an additional 116,000 people exposed to extreme coastal storm flooding. More>>

ALSO:

 
 

Gordon Campbell: On The Commerce Commission Fuel Report

The interim Commerce Commission report on the fuel industry will do nothing to endear the major oil companies to the New Zealand public... More>>

ALSO:

Emergency Govt Bill: Overriding Local Licensing For The Rugby

“It’s pretty clear some clubs are having difficulty persuading their district licensing committees to grant a special licence to extend their hours for this obviously special event, and so it makes sense for Parliament to allow clubs to meet a community desire." More>>

ALSO:

Leaving Contract Early: KiwiBuild Programme Losing Another Top Boss

Ms O'Sullivan began a six-month contract as head of KiwiBuild Commercial in February, but the Housing Ministry has confirmed she has resigned and will depart a month early to take up a new job. More>>

ALSO:

Proposed National Policy Statement: Helping Our Cities Grow Up And Out

“We need a new approach to planning that allows our cities to grow up, especially in city centres and around transport connections. We also have to allow cities to expand in a way that protects our special heritage areas, the natural environment and highly productive land." More>>

ALSO:

Ombudsman's Report: Ngāpuhi Elder 'Shocked' By Conditions At Ngawha Prison

A prominent Ngāpuhi elder is shocked to find inmates at Ngawha Prison are denied water and forced to relieve themselves in the exercise yard... Chief Ombudsman Peter Boshier has released a report highly critical of conditions at the Northland prison. More>>

ALSO:

Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>

ALSO:

School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>

ALSO:

IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>

ALSO:

Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels