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."
ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell:
On First Time Voting (Centre Right)

For the next two days, I’m turning my column over to two guest columnists who are first time voters. I’ve asked them to explain why they were voting, for whom and what role they thought their parental upbringing had played in shaping their political beliefs ; and at the end, to choose a piece of music.

One guest columnist will be from the centre right, one from the centre left. Today’s column is from the centre right – by James Penn:

As someone who likes to consider himself, in admittedly vainglorious fashion, a considered and rational actor, the act of voting for the first time is a somewhat confusing one. I know that my vote has a close to zero chance of actually influencing the outcome of Parliament. The chance I will cast the marginal vote that adds to National or Act’s number of seats in Parliament is miniscule. The chance, even if I did, that doing so would affect the government makes voting on a strictly practical level even more spurious as a worthwhile exercise.

But somehow I have spent a large amount of time (perhaps detrimentally so, depending on the outcome of my upcoming exams) agonising over how to cast my first vote in a national election. More>>

 

Parliament Today:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Not-Especially New Plans: All Prisons To Become Working Prisons Under National

All public prisons in New Zealand will become full working prisons by 2017, and ex-prisoners will receive post-release drug addiction treatment if National is returned to government, says Corrections Spokesperson Anne Tolley. More>>

ALSO:

Māngere: "False Claim Of Matai Title" - Labour

National must explain why its candidate for Māngere Misa Fia Turner appears to be using a Matai title she is not entitled to, Labour’s MP for Māngere and Pacific Islands Affairs spokesperson Su’a William Sio says. A Matai title is a legally-recognised ... More>>

ALSO:

CPAG Report: No New Zealand Child Should Grow Up In Poverty

Child Poverty Action Group's flagship policy publication Our Children, Our Choice: Priorities for Policy calls for cross party political agreement to underpin an action plan to eliminate child poverty in New Zealand. More>>

ALSO:

Gordon Campbell:
On National’s Phantom Tax Cut Package

Hmmm. So National’s tax cuts package turns out to be one of those television advertisements that screams a headline promise – perfect skin! a youth tonic that works! – while in very small print there’s an out clause: special conditions may apply. More>>

ALSO:

Water: New Marine Reserves On West Coast Opened

Five new marine reserves were officially opened by Conservation Minister Dr Nick Smith on the West Coast of the South Island to protect a range of marine ecosystems for conservation, science and recreation. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news