From John Armstrong in The Herald:
Is it enough? Michael Cullen has given it his best shot. He has been about as generous as he could be.
He and his Labour colleagues will not die wondering what might have been had the Finance minister’s tax cuts been bolder. He could not have been bolder without seriously risking pushing the Government accounts into the red.
His tax cuts – as he said – are at the limits of his comfort zone…
The clever feature of the tax cuts is that they deliver where it counts politically.
Single people on modest incomes will hardly be dancing in gratitude at the prospect of an extra $12 to $16 a week from October.
For families, however, it is a different story. Labour has again targeted more assistance to them – very deliberately.
So a two-child household earning $65,000 will get an extra $43 a week.
This is the territory where the election will be fought.
Cullen has laid down a challenge to National to do better without being profligate.
If the Budget does not give voters in the crucial $50,000 to $80,000 household income band who are leaning National’s way pause for thought, then nothing will.
From Vernon Small, “Budget proves Labour’s will to win”:
That is one brave – as in almost reckless – Budget.
And if any one doubted Labour still had the will to win the election, this should dispel it.
Delivering $22 to $55 a week in tax cuts and moving all the thresholds far beyond inflation adjustments over three years – is not even the half of it. By the time the programme is rolled out about half of all taxpayers will have at least $50 more in the hand making John Key’s ‘north of $50″aspiration less radical than it seemed.
On the way Cullen has thrown down the gauntlet to National. Everyone will get a cut on October 1 probably at least a month before they go to the polls including an extra kick for the 500,000 superannuitants worth $48 a fortnight for a couple.
Colin James writes: “Michael Cullen usually plays golf. In today’s Budget he switched to snooker.”
Brian Fallow dubs it “the rainy day Budget”.
Michael Cullen has been as good as his word.
When the economy was booming and the Government’s coffers overflowing he banked the surpluses and took the political heat.
Now economic growth is at a standstill, the coffers are underflowing and he has pushed the fiscal accelerator to the limits of prudence.
Colin Espiner is less satisfied with his tax cut but concedes: “Let’s give Cullen some credit. He did what he felt he could without going against everything he believes in. “
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