Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Green Party’s own Auditor of their Budget finds it dodgy

Green Party’s own Auditor of their Alternative Budget finds it dodgy

“The Alternative Budget released by the Green's does not even stack up in the eyes of their chosen auditor – Infometrics” said ACT Leader Dr Jamie Whyte.

"Infometrics found the revenue estimates be very much on the high side and said it would have been much more prudent to estimate considerably lower revenue from the Green party’s tax hikes."

"The revenue forecasts of the Greens simply did not take into account quite predictable behavioural responses to the massive increase in both the top tax rate and the trust tax rate that is paid by hundreds of thousands of small businesses and family farms in New Zealand. Infometrics had to call the greens out on this."

To quote the relevant passages in full, so there is no mistaking the dodgy numbers in the Alternative Budget of the Greens:

“Our second more substantial concern is that the estimates make no allowance for behavioural responses to the tax change” said Dr Whyte.

"The majority of post 1999 income growth occurs at income levels below $60,000. In particular there is the development of an income spike precisely at $60,000 – a spike that did not exist prior to the tax change in 1999."

Dr Whyte said “If the incentive is large enough people will rearrange their affairs to reduce their tax exposure.”

"The Green Party proposals to change the tax rate for trusts and to increase tax enforcement activities reflect an awareness of this propensity, but the revenue estimates do not reflect this awareness. "

"Tax avoidance is not necessarily illegal, but usually reflects a combination of people perceiving that the system is not equitable and an overly complex tax system."

"The former creates the incentive, the latter the means, for tax avoidance. Taxpayers will be surprisingly fast at changing their affairs, and most changes will be quite legal."

The Green Party tax revenue estimates take no allowance for a decline in the tax base and as such must be viewed as high-end estimates."

“We think it would be prudent to base fiscal estimates on considerably lower revenue estimates” said Dr Jamie Whyte.

The Greens cannot with any credibility claim that putting the top tax rate up to 40%, and putting up the trust tax rate to 40%, which affects hundreds of thousands of small businesses and family farms, will have no behavioural effects.”

“The Greens cannot have any credible claim to a senior ministerial portfolio after putting out so naive an alternative budget. The Green's proposals for a carbon tax are pointless unless there are behavioural changes – people will buy less carbon intensive products” said Dr Whyte.

" The Greens then go blind to the obvious behavioural effects of large tax increases when trying to hide their ropey economic analysis and ideological hatred of success, choice and personal responsibility."

"The Alternative Budget of ACT explicitly took account of the behavioural of responses of taxpayers to cuts in the top tax rate to 24% and cuts in the company tax rate to 12.5%. Some of these revenue offsets from these behavioural changes are immediate – to the order of 10% of revenue. The ACT party looks forward to a prosperous New Zealand" said Dr Whyte.

"The Green party wants to tax and regulate New Zealand into poverty."

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On John Key’s Trip To Iraq

In the embedded press coverage on this trip, the absence so far of any evaluation of the wider context of what New Zealand thinks it is doing at Camp Taji has been striking. More>>


Labour: Parata Puts Brakes On Charter School Appraisal

“When the Ministry of Education recommended they compare the achievements of children at charter schools to those of their counterparts at state schools, the documents show Hekia Parata specifically prohibited them from doing so." More>>


Bad Day For Universities: Gun, Bomb Threats On Three Campuses

Dunedin Police are continuing their investigation into the threat made against the University of Otago. Staff are following a number of lines of inquiry, and police are working to verify the authenticity and source of the post. More>>


Gordon Campbell: On The TPP Deal Reached In Atlanta

Yes, the TPP has helped to knock a few points off the tariffs facing our exporters. Yet some of those alleged dollar gains may well have been made regardless over time – and without the negative baggage of the concessions in the non-trade areas (intellectual property, copyright extensions, investor-state dispute mechanisms etc) that the TPP deal also brings in its wake. More>> (Cartoon by Dave Wolland)

Public Summaries:


Wellington.Scoop: Serco – First The Prisons, And Now It Wants To Run The Trains

As the government continues its inquiry into Serco’s discredited administration of Mt Eden prison in Auckland, here in Wellington there’s further scrutiny of the British outsourcing company – because it’s competing to take over the running of our commuter trains. More>>


Pre-Signing: Gordon Campbell On The TPP Countdown

To date, the Key government has been unwilling to share any information about this TPP deal until it is too late for outraged public opinion to affect the outcome... the disclosure process is likely to consist of a similarly skewed and careful exercise in spin. More>>


Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news