web analytics

Austerity = low tax take “surprise”

Written By: - Date published: 7:40 am, May 9th, 2012 - 37 comments
Categories: tax - Tags:

Once again the government’s books are showing a lack of income – $1.8 billion this time. Once again it is a surprise and the economy’s fault – both locally and globally. Not the government’s, they have no influence over the economy, except when they want to take credit.  Or when they sack thousands of public sector workers who suddenly have no income and don’t spend any more.  Or raise GST so people can’t afford to spend; and give tax breaks to the rich, who don’t need to spend and pay off debt instead.

Their lack of any sort of job plan causing 6.7% unemployment has nothing to do with the low tax take of course, it’s all Christchurch’s fault.

No investment in growth?  Nothing to do with it, it’s those dodgy global markets.

And those tax cuts were fiscally neutral – if you’ll just give me a bit longer to work out how to manipulate the figures…

Fortunately they’ve managed to cut further than expected into the public sector, so the books aren’t too out of balance.  Shame if you wanted the health and education they’ve cut of course, but austerity must be right, Bill said so*.

* shame Europe no longer agrees

37 comments on “Austerity = low tax take “surprise” ”

  1. marsman 1

    Blatant plunder with a nasty grin. Wake up Aotearoa!

  2. tc 2

    Frogs in water being warmed by the flames of deliberate ecomonic and social polilies of NACT/MP.
    MP don’t escape blame here, they passed the bills along with the shonkey mob.

  3. tracey 3

    C’mon be fair, wasn’t the job summit a huge success rather than a sideshow?

  4. Tigger 4

    But wait, the cycle way! Surely the hundreds of thousands of jobs created by that genius plan boosted our tax take by millions?

  5. Isn’t it to soon to call what effect the recent switch to “austerity” would have on the tax take?

    Where would the economy be now if the tax switch hadn’t happened? I asked Bernard Hickey that yesterday, he said “Good question. Treasury should, but they would say too early to judge…”

    Whether things would be better or worse if different policies had been followed can only be speculation, but would we have weathered the world economic difficulties better if Labour had won in 2008? Or if National had won in 2005?

    Government debt (and costs of servicing debt) would have increased, it’s just a matter of how much of a degree.

    World dairy prices would presumably have followed the same pattern.

    • Lanthanide 5.1

      If Labour had won 2008, we wouldn’t have a ridiculous $10b white elephant motorway scheme in place. That, by itself, makes the books look a lot worse than they otherwise would.

      If National had won in 2005 we would have had big tax cuts. Probably the government wouldn’t have been in as good a debt position as it wouldn’t have been running as large surpluses from 2005-2008 as they ended up doing.

      • insider 5.1.1

        All those highways were in the roading plans under Labour – some of them were even underway in the design and construction process – Waterview, Vic Park, Waikato expressway, Tauranga eastern link. The Nats did not invent most, if any, of them. What they did do was raise some of them up the priority order.

        • Lanthanide 5.1.1.1

          That only makes the situation marginally better. But it still doesn’t justify it.

        • McFlock 5.1.1.2

          What they did do was raise some of them up the priority order.

          Well, duh. They raised the stupid ones up the priority order, alongside one or two good ones. This is why building stupid roads is their fault. 
               
               
                 

    • Draco T Bastard 5.2

      Isn’t it to soon to call what effect the recent switch to “austerity” would have on the tax take?

      After 4 years of it? No.

      Now fuck off you apologiser for psychopathy.

      • Pete George 5.2.1

        National have only been back in power for three and a half years – are you referring to the economic downturn over four years? You may have a short memory, because the initial attempt at dealing with the “recession” was stimulus, but hardly anyone thinks we can keep pouring borrowed money into a difficult economic climate indenitely.

        David Parker was on NatRad this morning agreeing that we should be aiming at getting back to surplus by 2014-15, which means some austerity.

        Yesterday David Shearer was agreeing that a level of austerity was required.

        • millsy 5.2.1.1

          So how many hospitals and schools do you want to close and how many state houses do you want to sell.

          Do you not see that taxing those on higher incomes is much better than cutting services for everyone else.

          The wealthy have not had to pay an extra cent extra in tax since this crash. Instead, services have been cut for everyone else.

        • bbfloyd 5.2.1.2

          her we go again….. petey boy making half arsed, incomplete quotations to support a dangerously flawed world view…. which seems to have petey himself at the center of it…. what a surprise….

          another grammatically correct pile of nothing from united futures go to guy…..

        • grassroots 5.2.1.3

          There is an alternative.  It is called increased taxation for the wealthy.  Last time this was tried it worked perfectly well and the Government paid off all of our debt.  It is a shame some cannot even think of it as an option.

        • Draco T Bastard 5.2.1.4

          National have only been back in power for three and a half years

          And over that time they’ve made things worse for the majority of people and it’s all due to their implementation of austerity which seems to only have affected the majority while the rich minority are doing quite well out of it.

        • Lanthanide 5.2.1.5

          It was Nationals’ incessant screeching about tax cuts that forced Labour to roll out tax cuts in the 2008 budget (tax cuts that we couldn’t really afford, but were a bit fairer). Those same tax cuts that National then cancelled, booked the ‘savings’ from doing so and then spent on their own tax cuts.

          • Colonial Viper 5.2.1.5.1

            Cullen should have introduced a stamp duty on houses and mortgages. Too unpopular with the middle and upper middle class for a centrist party like Labour to risk though.

            • rosy 5.2.1.5.1.1

              Yep. That would make up for few of the items missing from our universal, pure GST system.

      • “Now fuck off you apologiser for psychopathy.”

        Awesome level of discourse right there

  6. Lanthanide 6

    [Moved – also the delete button doesn’t seem to do anything, just goes to a blank page with -1 on it]

  7. Dr Terry 7

    Given the harsh and punitive measures the Tories have taken (and intend still to take) it would be a shock if they did not return to “surplus”! So what if they do? Money is surely the servant of human beings, not the master (or has that reversed, making me very “old-fashioned?) Will it be just fine to have a prosperous country that is filled with wretched and miserable people? Or filled with those who remain after establishing a New Zealand colony in Australia?
    I wonder if anything can get worse in blessed post-Key days? Even Collins and Joyce would find it hard to be less compassionate than this product of the (corrupt) world of finance and big business.

    • bbfloyd 7.1

      at least collins has the advantage of having a face that would make an excellent replacement for the “bogey man” used to scare little children into behaving better…

      joyce is “grownup” scary…..

  8. muzza 8

    What we are really seeing is the deliberate sabotage of the NZ paliamentary system. People know that government, and most of parliament do not work for the country or those in it. We see decades of evidence, and the contimual changes of government have all lead us to the current point, while many still argue the merits of left or right, the country continues its slide down the toilet.

    The interesting reaction will come, when presented with the opportunity for NZ to dispatch its governence system for one administered offshore.

    What will Kiwis choose (not that it will be a choice)

  9. DH 9

    I wonder how much the GST increase is affecting the tax take. 15% is a strong incentive for certain types of people to do cash deals and that must hurt the tax base.

    • bbfloyd 9.1

      from memory, the gst take is down over half a billion…. and it’s not just “certain types” doing cash deals…. the “black” economy is one of the few success stories of this government…. the way it’s growing….

      • DH 9.1.1

        That’s been my feeling for a while now. A lot of immigrants who go into business here are from countries with a cultural aversion to paying tax and the IRD have acknowledged it as a problem in the past. When people do a cash deal it’s not just GST the taxman loses, it’s the 30% income tax as well since the whole transaction has to be kept off the books. Every $1000 deal done for cash loses the taxman $390…. would add up pretty fast.

        • McFlock 9.1.1.1

          I’m just wondering how long it will be before we start getting lower scores in the corruption scale.
                
          After all, it seems to be well ensconced at the top. 

        • rosy 9.1.1.2

          A lot of immigrants who go into business here are from countries with a cultural aversion to paying tax and the IRD have acknowledged it as a problem in the past.

          I suggest our cultural practices of ‘mates rates’ and ‘under the table’ might be booming too.

    • Lanthanide 9.2

      I simply can’t square the reported income figures, particularly in Christchurch, with the amount of economic activity I see out in the malls day after day, people spending spending spending.

      I’ve come to the conclusion that our very high number of small home businesses are actually just ways to cheat the tax man. Set up your own home business that makes a turnover of $20-30k/year, not really terribly worthwhile, but when you get to claim house insurance, electricity, phone bills, car expenses (things that you would be paying for anyway) back against your ‘company’ it becomes more worthwhile.

      I guess the way to justify or squash this suspicion would be if IRD publishes stats on the number of small businesses and how much they claim back on average. Haven’t seen any national commentators ever mention it so maybe it’s not really an issue. This wouldn’t address the cash economy side of things, of course.

  10. eduardo kawak 10

    How about Parliament do some walking the walk for a change, instead of talking the talk and then doing the opposite?

    PM – New salary (backdated to July 1): $411,510. Was: $400,500.

    Deputy PM – New salary: $291,800. Was: $282,500.

    Cabinet Minister – New salary: $257,800. Was: $249,100.

    Ministry Outside Cabinet – New salary: $217,200. Was: $209,100.

    Speaker and Opposition Leader – New salary: $257,800. Was: $249,100.

    Backbenchers – New salary: $141,800. Was: $134,800.

    No sign of austerity measures there.

  11. Paul 11

    The French
    The Greeks
    Heroes

    • Colonial Viper 11.1

      Iceland are the heroes mate, they told the banks where to shove it.

  12. Paul 12

    Agreed
    And the Bolivians they told the corporates to stuff it

Recent Comments

Recent Posts

  • Govt strengthens emergency management cooperation between NZ and the US
    An agreement signed today between New Zealand’s National Emergency Management Agency (NEMA) and the United States’ Federal Emergency Management Agency (FEMA) will strengthen global emergency management capability, says Minister for Emergency Management Kieran McAnulty. “The Government is committed to continually strengthening our emergency management system, and this Memorandum of Cooperation ...
    BeehiveBy beehive.govt.nz
    27 mins ago
  • New Zealand to stay at Orange as winter continues
    New Zealand will remain at the Orange traffic light setting, while hospitalisations remain elevated and pressure on the health system continues through winter. “There’s still significant pressure on hospitals from winter illnesses, so our current measures have an ongoing role to play in reducing the number of COVID-19 cases and ...
    BeehiveBy beehive.govt.nz
    47 mins ago
  • Boost for agricultural and horticultural science in schools
    More young minds eyeing food and fibre careers is the aim of new Government support for agricultural and horticultural science teachers in secondary schools, Agriculture and Rural Communities Minister Damien O’Connor announced today. The Government is committing $1.6 million over five years to the initiative through the Ministry for Primary ...
    BeehiveBy beehive.govt.nz
    3 hours ago
  • Bumper breeding season boosts Kākāpō population
    Kākāpō numbers have increased from 197 to 252 in the 2022 breeding season, and there are now more of the endangered parrots than there have been for almost 50 years, Conservation Minister Poto Williams announced today. The flightless, nocturnal parrot is a taonga of Ngāi Tahu and a species unique ...
    BeehiveBy beehive.govt.nz
    4 hours ago
  • Relationship with Malaysia to be elevated to Strategic Partnership
    The relationship between Aotearoa New Zealand and Malaysia is to be elevated to the status of a Strategic Partnership, to open up opportunities for greater co-operation and connections in areas like regional security and economic development. Foreign Minister Nanaia Mahuta met her Malaysian counterpart Dato’ Saifuddin Abdullah today during a ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • Call for New Zealanders to get on-board with rail safety
    With additional trains operating across the network, powered by the Government’s investment in rail, there is need for a renewed focus on rail safety, Transport Minister Michael Wood emphasised at the launch of Rail Safety Week 2022. “Over the last five years the Government has invested significantly to improve level ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Regional approach the focus at ASEAN and East Asia Summit talks
    The Foreign Minister has wrapped up a series of meetings with Indo-Pacific partners in Cambodia which reinforced the need for the region to work collectively to deal with security and economic challenges. Nanaia Mahuta travelled to Phnom Penh for a bilateral meeting between ASEAN foreign ministers and Aotearoa New Zealand, ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • The beat goes on as Government renews support for musicians
    Extension of Aotearoa Touring Programme supporting domestic musicians The Programme has supported more than 1,700 shows and over 250 artists New Zealand Music Commission estimates that around 200,000 Kiwis have been able to attend shows as a result of the programme The Government is hitting a high note, with ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister of Defence to attend Guadalcanal Commemorations in the Solomon Islands
    Minister of Defence Peeni Henare will depart tomorrow for Solomon Islands to attend events commemorating the 80th anniversary of the Battle of Guadalcanal. While in Solomon Islands, Minister Henare will also meet with Solomon Islands Minister of National Security, Correctional Services and Police Anthony Veke to continue cooperation on security ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New programme to provide insights into regenerative dairy farming 
    The Government is partnering with Ngāi Tahu Farming Limited and Ngāi Tūāhuriri on a whole-farm scale study in North Canterbury to validate the science of regenerative farming, Agriculture Minister Damien O’Connor announced today.   The programme aims to scientifically evaluate the financial, social and environmental differences between regenerative and conventional practices. ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • More women on public boards than ever before
    52.5% of people on public boards are women Greatest ever percentage of women Improved collection of ethnicity data “Women’s representation on public sector boards and committees is now 52.5 percent, the highest ever level. The facts prove that diverse boards bring a wider range of knowledge, expertise and skill. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Awards support Pacific women
    I am honoured to support the 2022 Women in Governance Awards, celebrating governance leaders, directors, change-makers, and rising stars in the community, said Minister for Pacific Peoples Aupito William Sio. For the second consecutive year, MPP is proudly sponsoring the Pacific Governance Leader category, recognising Pacific women in governance and presented to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Govt investment into Whakatāne regeneration reaches new milestones
    Today Economic and Regional Development Minister Stuart Nash turned the sod for the new Whakatāne Commercial Boat Harbour, cut the ribbon for the revitalised Whakatāne Wharf, and inspected work underway to develop the old Whakatāne Army Hall into a visitor centre, all of which are part of the $36.8 million ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government determined to get a better deal for consumers
    New Zealanders are not getting a fair deal on some key residential building supplies and while the Government has already driven improvements in the sector, a Commerce Commission review finds that  changes are needed to make it more competitive. “New Zealand is facing the same global cost of living and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government exceeds Mana in Mahi target
    Mana in Mahi reaches a milestone surpassing 5,000 participants 75 per cent of participants who had been on a benefit for two or more years haven’t gone back onto a benefit 89 per cent who have a training pathway are working towards a qualification at NZQA level 3 or ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government opens new research and innovation hub
    The Government has invested $7.7 million in a research innovation hub which was officially opened today by Minister of Research, Science and Innovation Dr Ayesha Verrall. The new facility named Te Pā Harakeke Flexible Labs comprises 560 square metres of new laboratory space for research staff and is based at ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Unemployment remains low and wages rise despite volatile global environment
    Unemployment has remained near record lows thanks to the Government’s economic plan to support households and businesses through the challenging global environment, resulting in more people in work and wages rising. Stats NZ figures show the unemployment rate was 3.3 percent in the June quarter, with 96,000 people classed out ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • First ever climate adaptation plan lays foundations for resilient communities
    Action to address the risks identified in the 2020 climate change risk assessment, protecting lives, livelihoods, homes, businesses and infrastructure A joined up approach that will support community-based adaptation with national policies and legislation Providing all New Zealanders with information about local climate risks via a new online data ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New mental health and addiction services making a difference for Māori
    Māori with mental health and addiction challenges have easier access to care thanks to twenty-nine Kaupapa Māori primary mental health and addiction services across Aotearoa, Associate Minister of Health Peeni Henare says. “Labour is the first government to take mental health seriously for all New Zealanders. We know that Māori ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Data and Statistics Bill Passes its Third Reading
    A Bill which updates New Zealand’s statistics legislation for the 21st century has passed its third and final reading today, Minister of Statistics David Clark said. The Data and Statistics Act replaces the Statistics Act, which has been in effect since 1975. “In the last few decades, national data and ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Further moves to improve the lives of disabled people
    The Accessibility for New Zealanders Bill has passed its first reading in Parliament today, marking a significant milestone to improve the lives of disabled people. “The Bill aims to address accessibility barriers that prevent disabled people, tāngata whaikaha and their whānau, and others with accessibility needs from living independently,” said ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to the China Business Summit
    Kia ora koutou, da jia hao It’s great to be back at this year’s China Business Summit. I would first like to acknowledge Prime Minister Jacinda Ardern, former Prime Minister Helen Clark, His Excellency Ambassador Wang Xiaolong, and parliamentary colleagues both current and former the Right Honourable Winston Peters, the ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Further changes to CCCFA Regulations will improve safe access to credit
    Narrowing the expenses considered by lenders Relaxing the assumptions that lenders were required to make about credit cards and buy-now pay-later schemes. Helping make debt refinancing or debt consolidation more accessible if appropriate for borrowers The Government is clarifying the Credit Contracts and Consumer Finance (CCCFA) Regulations, to ensure ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government prioritises firearm prohibition orders to reduce gun harm
    The Firearms Prohibition Order Legislation Bill will be passed through all remaining stages by the end of next week, Police Minister Chris Hipkins said. The Justice Select Committee has received public feedback and finalised its report more quickly than planned. It reported back to the House on Friday.  “The Bill will ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • National plan to protect kauri commences
    The Government has stepped up activity to protect kauri, with a National Pest Management Plan (NPMP) coming into effect today, Biosecurity Minister Damien O'Connor and Associate Environment Minister James Shaw said. “We have a duty to ensure this magnificent species endures for future generations and also for the health of ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Support for Samoa’s Climate Change Plan and rebuild of Savalalo Market
     Prime Minister Ardern met with members of Samoa’s Cabinet in Apia, today, announcing the launch of a new climate change partnership and confirming support for the rebuild of the capital’s main market, on the occasion of the 60th Anniversary of the signing of the Treaty of Friendship between Aotearoa New ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Reconnecting with ASEAN and Malaysia
    Foreign Minister Nanaia Mahuta departs for the Indo-Pacific region today for talks on security and economic issues at meetings of ASEAN and the East Asia Summit in Cambodia, and during bilateral engagements in Malaysia. “Engaging in person with our regional partners is a key part of our reconnecting strategy as ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Statement to the 2022 Review Conference for the Treaty on the Non-Proliferation of Nuclear Weapons
    United Nations Headquarters, New York City  Thank you, Mr President. Ngā mihi ki a koutou. I extend my warm congratulations to you and assure you of the full cooperation of the New Zealand delegation. I will get right to it. In spite of the Nuclear Non-Proliferation Treaty and the nuclear ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • 10,000 more permanent public homes added under the Labour Government
    A major milestone of 10,037 additional public homes has been achieved since Labour came into office, the Housing Minister Dr Megan Woods confirmed today. “It’s extremely satisfying and a testament to our commitment to providing a safety net for people who need public housing, that we have delivered these warm, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Sanctions on Russian armed forces and weapons manufacturers
    The Minister of Foreign Affairs Nanaia Mahuta has announced further sanctions on the armed forces and military-industrial complex of the Russian Federation. “President Putin and the Russian military are responsible for violating the sovereignty and territorial integrity of Ukraine, which is a grave breach of fundamental international law,” Nanaia Mahuta ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government plan to boost health workers
    Easing the process for overseas nurses and provision of up to $10,000 in financial support for international nurses for NZ registration costs. Provide for the costs of reregistration for New Zealand nurses who want to return to work. Covering international doctors’ salaries during their six-week clinical induction courses and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Today marks one year since Government’s Dawn Raids apology
    A new  future between Pacific Aotearoa and Ngāti Whātua Ōrākei is the essence of a Dawn Raids Apology anniversary event in Auckland this month, said Minister for Pacific Peoples Aupito William Sio. One year ago, Prime Minister Jacinda Ardern formally apologised to Pacific communities impacted by the Dawn Raids in ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • PM Speech to China Business Summit
    Tēnā koutou katoa Tuia ngā waka, Tuia ngā wawata, Tuia ngā hou-kura Let us bind our connection, let us bind our vision, let us bind our shared aspiration for peace and prosperity. This year marks a significant milestone in the New Zealand – China relationship.   Fifty years ago – 1972 – ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Cook Islands Language Week will close generational gap
    It’s Cook Islands Language week and the Minister of Pacific Peoples, Aupito William Sio wants the community to focus on what it means to keep the language alive across the generations. “Our Cook Islands community in Aotearoa have decided to focus on the same theme as last years; ‘ Ātuitui’ia ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Cost of Living support payment to reach over 2 million New Zealanders
    From 1 August an estimated 2.1 million New Zealanders will be eligible to receive the first targeted Cost of Living Payment as part of the Government’s plan to help soften the impact of rising global inflationary pressures affecting New Zealanders, Prime Minister Jacinda Ardern says. The payments will see eligible ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand’s border fully open to visitors and students
    · New Zealand’s international border opens to all visitors, including from non-visa waiver countries, and international students from 11:59PM, 31 July 2022. · Cruise ships and recreational yachts able to arrive at New Zealand ports. This evening marks the final step in the Government’s reconnecting plan, with visitors from non-visa ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government sets out plan to eliminate HIV transmission in New Zealand
    New Action Plan to eliminate HIV transmission released for consultation today $18 million Budget 2022 boost Key measures to achieve elimination include increasing prevention and testing, improving access to care and treatment and addressing stigma The Government has today released its plan to eliminate the transmission of HIV in ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government support lifts income for beneficiaries
    A report released today shows Government support has lifted incomes for Beneficiaries by 40 percent over and above inflation since 2018. “This is the first time this data set has been collected, and it clearly shows Government action is having an impact,” Carmel Sepuloni said. “This Government made a commitment ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Māori Housing: Urban development underway in Mt Wellington
    Thirty new warm, safe and affordable apartments to be delivered by Tauhara North No 2 Trust in Tāmaki Makaurau Delivered through Whai Kāinga Whai Oranga programme, jointly delivered by Te Puni Kōkiri and the Ministry of Housing and Urban Development Allocation of the apartments will be prioritised to support ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Phil Twyford to attend Nuclear Non-Proliferation Treaty meeting
    Disarmament and Arms Control Minister Phil Twyford will lead Aotearoa New Zealand’s delegation to the Nuclear Non-Proliferation Treaty (NPT) Review Conference at the United Nations in New York next week. “Aotearoa New Zealand has a long history of advocating for a world free of nuclear weapons,” Phil Twyford said. “The NPT has ...
    BeehiveBy beehive.govt.nz
    2 weeks ago