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


Reserve Bank Showing Unaffordability of Cut in Top Tax Rate

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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Yesterday’s Big Parliamentary Air Kiss To China

In order to obtain support from the two major parties, Act Party deputy leader Brooke Van Velden twice had to soften the language of her parliamentary motion yesterday condemning China’s persecution of the Uighurs. The key word “genocide” was deleted. Evidently, the kind of resolution passed by a conservative government in the UK proved to be far too tough for a centre-left Labour government and a centre-right National opposition to countenance. Yesterday, the two major parties were united in their fear of retribution from China... More>>


Government: Fair Pay Agreements To Improve Pay And Conditions For Essential Workers

The Government is delivering on its pre-election commitment to implement Fair Pay Agreements which will improve wages and conditions, as well as help support our economic recovery, Workplace Relations and Safety Minister Michael Wood announced today. More>>


Public Services: Government Sets Pay And Workforce Expectations For The Public Sector

The Government’s Workforce Policy Statement issued today sets out its expectations for pay and employment relations in the Public Sector, the Minister of Finance and Minister for the Public Service say. “New Zealand has had an exceptionally successful ... More>>


Government: Budget 2021 Reprioritises Nearly $1 Billion

Hon Grant Robertson Deputy Prime Minister Minister of Finance The Government’s strong pandemic response and the better than expected economic recovery means not all the money allocated in the COVID-19 Response and Recovery Fund has been spent, ... More>>


PM: Statement On The Speaker And Annual Review Debate

“The serious issue of alleged sexual assault and harassment at Parliament was poorly managed and inappropriately politicised last night. The tone of the debate did not reflect well on Parliament as a whole,” Prime Minister Jacinda Ardern said. ... More>>

Parliament: Mallard Fails To Give Taxpayers A Straight Answer

Trevor Mallard has confirmed he is unfit to be Parliament’s Speaker by failing to answer several important questions relating to the false rape accusation saga that cost taxpayers more than $330,000, Shadow Leader of the House Chris Bishop says. ... More>>

Local Government: Independent Review To Explore Future

Local Government Minister Nanaia Mahuta says an independent review of local government will explore how councils can maintain and improve the wellbeing of New Zealanders in the communities they serve long into the future. More>>


PM Ardern And PM Morrison: Commencement Of Two-Way Quarantine-Free Travel Between Australia And New Zealand

Joint Statement by Prime Ministers Scott Morrison and Jacinda Ardern Commencement of two-way quarantine-free travel between Australia and New Zealand Today, Australia and New Zealand have fulfilled their commitment to establish two-way quarantine free ... More>>




InfoPages News Channels