This shows how meaningless tax cuts are. From last night’s TV3 poll:
When you receive tax cuts this month [they began on April 1], do you think you will be most likely to spend it, save it, pay off debt or other?
*Spend it 25.3 per cent
*Save it 30.1 per cent
*Pay off debt 22.4 per cent
*Other 12.6 per cent
*Not applicable 9.6 per cent
I’m one of the savers. I haven’t changed my behaviour because of the tax cuts, I just have more money in my savings account each week.
The fact that only 25% of people are spending their tax cut makes a mockery of the idea they are an economic stimulus. We clearly would have got more stimulus from the government spending that money on sustainable infrastructure or by giving it to people who actually need the money.
The really amazing bit though is that at least 77% of respondents think they got a tax cut. In reality, less than half of taxpayers did. If people don’t even know if they got a tax cut or not how can tax cuts possibly encourage people to work more and harder like the Government claims?