Rodney Hide is calling for the Budget’s tax cuts to take the form of raising the thresholds to account for inflation since 1999, removing of the 39 cent bracket, and a $10,000 tax-free bracket.
What would ACT’s tax cuts entail for New Zealanders? Hide says the average cut would be $50 a week, so we would need to find $8 billion out of the Budget for that – $5 billion more than most commentators say is available for cuts. That means the first implication of such massive cuts is slashed social services less money for hospitals and teachers.
But they’ve got $50 a week to make up for it eh? Well, no. That’s the average cut but most of it goes to the wealthy. If, like 50% of people, your income is less than $27,000, ACT you’ll get less than $33 a week (which will disappear on more expensive doctor’s visits, school fees, private ACC levies). If, like 1% of people, your income is more than $150,000, your tax cut would be more than $145 a week.
Well, you can’t accuse them of being populist.
[PS. have a peek at the press release. At the end, Roger Douglas says we should have a tax system as flat as possible, like Russia and China. Ah, imitating the dictatorships with massive disparities between rich and poor, that’s the way to go.]