$2 billion borrowed for tax cuts, so far

Written By: - Date published: 9:15 am, May 14th, 2012 - 11 comments
Categories: budget 2010, tax - Tags:

Remember National’s ‘fiscally neutral’ tax cuts? Turns out they’ve cost $2 billion in their first 18 months (previously, we only knew they had cost $1.1 billion in their first 9 months). Without those reckless tax cuts, we wouldn’t be facing zero budgets.

Now, the Right’s story changes, of course. They were never meant to be fiscally neutral, they were stimulus spending – right, because everyone knows the way to stimulate an economy is to up tax on spending and cut it for the rich, those most likely to save. In fact, Treasury said the tax cuts would increase growth by 0.9% over ten years – an immeasurably small amount.

11 comments on “$2 billion borrowed for tax cuts, so far”

  1. Blue 1

    The Nats are never going to admit that the tax cuts were one part ideology to two parts vote-buying.

    Hard to remember those days when the Govt was running such large surpluses that the Nats were demanding that taxes be cut. Now all we see is deficits and debt and desperation.

    • infused 1.1

      Look around the world. Open your eyes. Things aren’t that bad.

      • mickysavage 1.1.1

        Yep thank the stars for Michael Cullen.  Things could have been far worse …

        • Pascal's bookie

          Yeah, someone wanted us to be more like Ireland in 05.

        • felix

          Oh come on, that was totally different.

          Under Cullen they demanded that they deserved tax cuts ‘cos the economy was doing so well. Under English they demand that they need them ‘cos the economy is so shite.

          Totes different.

        • infused

          lol… thanks for the laughs micky. What’s the total cost of that trainset now? After all the upgrades, maintenance, stock?

          • felix

            Good point. Never should have given any of it away.

          • Lanthanide

            Pretty good argument for never having sold it in the first place, eh?

            What’re you going to be saying in 20 years time when we have to bailout Mighty River Power because of severe electricity shortages due to underinvestment and asset stripping?

          • Kotahi Tane Huna

            Infused, yeah, lol, you haven’t a shit show of defending what Blinglish is doing so divert, go for the next best thing, and guess what, since upgrades etc add value, you’ve done a shit job of that too.

            Plus what Felix said.

      • Deano 1.1.2

        maybe. did National make it worse by borrowing $2b for ‘fiscally neutral’ tax cuts?

        • Colonial Viper

          And it wasn’t “fiscally neutral” for John Key and Bill English. Both of them collect a stack of money per month from the tax cuts.

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