Parliament

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

 

Reserve Bank shows unaffordability tax cut


Hon Jim Anderton


Member of Parliament for Wigram
09 December 2010 Media Statement


Reserve Bank statement shows unaffordability of cut in top tax rate

It’s National’s fault.

The cuts in the top tax rate from 39 cents down to 33 cents since the 2008 election are helping to put New Zealand’s recovery on hold, Progressive Wigram MP Jim Anderton says.

The Reserve Bank today identified “elimination of New Zealand’s fiscal deficit” as a factor that’s adding pressure to interest rates and keeping the dollar high.

“The fiscal deficit is caused because the government reduced the top tax rate. 42% of the tax cuts since the 2008 election went to the top ten per cent of income earners.

“If the government had only pushed out the threshold at which the highest tax rate applies, and not cut the top tax rate from 39 cents to 33 cents, most of the fiscal deficit would not exist.

“Because of the irresponsible cut in the top rate, interest rates are higher and the dollar is higher - putting pressure on our exporters and making it cheaper for foreigners to come in and buy up New Zealand.

“This is National’s idea of economic management: The recovery has stalled. Business investment is ‘below average.’ Households are not spending. Homes aren’t selling. House prices are falling. Unemployment is higher than it was when National took office and wages have stalled.

“The Reserve Bank today made clear that this is all National’s fault. But will the Prime Minister accept that the buck stops with him? Don’t hold your breath,” Jim Anderton says.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Our (Fatal?) Shortage Of Ventilators

With a few honourable exceptions there has been a striking lack of focus on the (insufficient) number of ventilators in our intensive care units – and an almost complete absence of overt urgency about acquiring and/or building more of them. Ventilators are literally the difference between life and death for seriously ill Covid-19 patients. Arguably, this shortfall is more vital than having enough PPE gowns, masks and gloves, important as those are...More>>

 
 


Police Commissioner: Christchurch Terrorist Pleads Guilty

Police acknowledge the guilty pleas in the Christchurch Mosque attacks prosecution that were entered in the Christchurch High Court today. The guilty pleas to 51 charges of murder, 40 charges of attempted murder and one charge of engaging in a terrorist ... More>>

ALSO:

Government: Nation Steps Up To COVID-19 Alert Level 2

New Zealand has been moved up to COVID-19 Alert Level 2, Reduce Contact, in an escalation of efforts to reduce the spread of the virus in New Zealand, Prime Minister Jacinda Ardern announced today... More>>

ALSO:

COVID-19: Business Response Package

Cabinet today approved the development of a Business Continuity Package to help support the economy through the disruption caused by COVID-19. “New Zealand is well-placed to respond to COVID-19. More>>

ALSO:


Transport: $54 billion Investment In Draft GPS 2021

The Draft Government Policy Statement (GPS) 2021 on land transport confirms that the Government will invest a record $54 billion in its balanced transport policy over the next decade. More>>

ALSO:

Gordon Campbell: On The Loss Of Abortion Safe Zones

No doubt, last night’s defeat of abortion law reform provisions that would have created safe zones around abortion clinics will be portrayed, by some, as a victory for free speech. It isn’t. It was a victory for bigotry and intimidation directed ... More>>

ALSO:

Gordon Campbell: On National's Regulation Crusade

Lets step back in time now, to simpler days and to simple-minded solutions. So…. if National gets elected, landlords will once again be able to evict tenants at will, raise rents anytime they like, and ignore the need to install a healthy standard of heating in the homes they put out to rent. This promised ‘bonfire of regulations’ is being done in the name of cutting red tape... More>>

ALSO:

SMC - Expert Reaction: PF2050 Strategy

DOC has released a strategy to reach Predator Free 2050, along with an action plan through to 2025. The predator-free goal focuses on three groups of mammals: possums, three species of rats, plus stoats, ferrets and weasels... More>>

ALSO:


Land, Air And Sea: Regions To Benefit From NZ Upgrade

Regional New Zealand will be a hive of activity in the coming months as the New Zealand Upgrade Programme delivers on its promise to modernise our infrastructure, prepare for climate change and help grow our economy. As part of the $12 billion ... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels