web analytics

Dunne: feathering his own nest

Written By: - Date published: 12:40 pm, April 28th, 2008 - 12 comments
Categories: tax - Tags:

Peter Dunne is once again touting his plans to introduce income splitting.

It’s a policy aimed at helping out the wealthy. New Zealand Institute of Economic Research senior economist Patrick Nolan tells us that “80% of the tax gains of income-splitting would go to the top 20% of taxpayers”.

Dunne was reportedly “not bothered” by the criticism that top earners would do best out of the policy.

No surprise there.

Remember that Dunne’s tiny party hangs on to power only because of his safe seat of Ohariu – coincidently, an electorate with the highest median personal income levels in the country and the fifth highest family incomes.

12 comments on “Dunne: feathering his own nest ”

  1. roger nome 1

    Let’s not forget transmission gully either – Peter Dunne’s $2 billion pork-barrel project. His entire political career is dependent on his seat of comfortable upper-middle class voters. So they’re the only ones that can expect to gain from his being in parliament. Stay puft has to go!

    http://upload.wikimedia.org/wikipedia/en/2/20/Stay-puff-marshmellow-man-original-toy.jpg

  2. Catherine 2

    Currently income tax in New Zealand is assessed on an individual basis regardless of your partnership status, and with no allowance made for and dependent children.

    Yet Income Support is jointly assessed. So if you are the non-employed partner on your household, you can’t apply for a benefit in your own right since your partner’s income would be taken into account. This is discrimination on the basis of marital status.

  3. mike 3

    “Remember that Dunne’s tiny party hangs on to power only because of his safe seat of Ohariu”

    A bit like that fossil of a man Jim Anderton.

    As Catherine says why are we jointly assessed when it comes to dishing out money but individually assessed when it comes to taking it away?

  4. randal 4

    ah sweet mystery of life…why is the sky blue>

  5. reltih_a 5

    Income splitting, all PD is doing is looking after his constuituents then, that is what an MP is supposed to do I thought. Nothing wrong with this concept. Unfortunitely my wife and I earn more than $120K so it will not affect us unless the top tax band is lifted. However my wife also has secondary tax for a second job. This is theft.

  6. burt 6

    Have any of you read the discussion document ?

    see: IRD Policy Advice Division

  7. burt 7

    Labour needs to learn a little bit about simplicity when looking at tax and welfare.

    If there was a zero rated bottom end (perhaps $10K) and income splitting was available to families then WFF would be redundant and shown up for how wasteful and inequitable it really is.

  8. Matthew Pilott 8

    Burt – how would that deiver targetted tax credits to people with children? You know that’s the point of WfF right?

  9. burt 9

    Matthew Pilott

    Did you not read what I said above “and income splitting was available to families”.

    This (allowing income splitting) is the targeting families, a non taxed bottom income bracket delivers ‘tax free’ status up to $20k for families if 50/50 splitting is allowed.

    Depending on other tax brackets and thresholds it’s impossible to tell how this would compare to WFF in therms of benefits across a range of incomes. It’s simply partisan to say it won’t deliver the goods without having some numbers to work on. Additionally tax free thresholds could be simply extended in welfare calculations making a much simpler system to understand and administer. Remembering tax payers fund all the systems which are currently designed around popular concepts with little though for pragmatic solutions and unintended consequences.

    Either having children (increasing population inside NZ rather then through immigration) is something the govt wish to encourage and support or it is not? If the govt only wish to encourage and support it for low income families then that’s just madness (which is no surprise from a social engineering govt like Labour).

    WFF is encouraging people who have the least ability to support their own children to have more while giving no incentive for people who can support and provide opportunities to do so. WFF will deliver the population bulge of lower income earners that will ensure Labour govt’s are popular for ever – but is this the type of society we really want to engineer? Is it really in NZ’s best interest to do this?

  10. Matthew Pilott 10

    Burt, as I said, the point of WfF is to help those with children bring them up – it’s not cheap, so I’m sure every cnt helps. It was simply an assumption on your behalf that a lower minimum tax rate and income splitting would render WfF redundant – and it is a subjective matter, not fact as you assert.

    I think income splitting wouldn’t be a cakewalk to implement either, at least as difficult as WfF. I’m not simply being partisan – I think WfF is better that income splitting. I’m all for the suggeste lower tax thresholds at the lower level though.

    Do you think people are more likely to have a child because of WfF? Doubtful, since when has childbirth been a purely financial transaction? “population bulge” eh? It’s not quite the end of WWII I’m afraid burt, that sounds like hysterical fearmongering to me.

    Have you ever, on any blog, complained that WfF is ‘middle class welfare’ or that it targets people with too high an income? Because income splitting gives the greatest benefits to higher income people – this is worse than middle class welfare. Is this the type of society you want to engineer? Cash for the rich and the Devil (or the streets) take the hindmost?

    As a footnote – I’m not entirely comfortable with WfF but believe it was a better alternative to a tax cut (because kids are expensive).

  11. burt 11

    Matthew Pilott

    Have you read the discussion document?

    2.14 In every country where joint taxation is allowed, income can be split between partners who do not have children. This is because the general rationale for taxing on a family basis is one of increasing fairness in the taxation of households with different compositions of income. In other words, why should two different couples with the same aggregate income pay different amounts of tax?

    Imagine what a difference that could make to the savings culture in NZ.

  12. Matthew Pilott 12

    Yes burt – the savings culture of the rich, as they would benefit more from income splitting. Rrom the herald:

    Families in which one parent earned $120,000 or more a year and the other had no income would gain the most. Splitting the income 50/50, the family could cut its annual income tax by nearly $9000.

    When one parent had an income of $60,000 a year and the other had none, the tax saving to the family would be just over $3000, assuming the same 50/50 split. If one parent earned $60,000 and the other $30,000 the family would save about $960. Submissions close on June 30.

Recent Comments

Recent Posts

  • Govt to rev up reductions in transport emissions
    The Government is calling for feedback on a range of potential policies to eliminate emissions in the transport sector. Transport Minister Michael Wood today released Hīkina te Kohupara – Kia mauri ora ai te iwi - Transport Emissions: Pathways to Net Zero by 2050, a Ministry of Transport report outlining ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Government recognises David McPhail’s contribution to New Zealand comedy and television
    Minister for Arts, Culture and Heritage Carmel Sepuloni today pays tribute to David Alexander McPhail (11 April 1945 – 14 May 2021) – New Zealand comedian, actor, producer and writer. David McPhail ONZM QSM had a comedy career that spanned four decades, across both television and theatre.  “David’s contribution to ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Support for drought-stressed regions fills a need
    An innovative iwi-led plan to help maintain water supply to a far North community battered by drought is set to get underway with support from the Government, Acting Minister for Emergency Management Kris Faafoi says.  “The impacts of climate change are not something that just our grandchildren will have to ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • KiwiSaver default provider scheme improvements slash fees, boosts savings
    Hundreds of thousands of New Zealanders will be significantly better off in retirement following changes to the default KiwiSaver scheme, Finance Minister Grant Robertson and Commerce and Consumer Affairs Minister David Clark said today. The new default provider arrangements, which will take effect once the terms of the current providers ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • Industry leadership for our training system becomes reality
    Six new Workforce Development Councils formally established today will ensure people graduate with the right skills at the right time to address skill shortages, Education Minister Chris Hipkins said. Every industry in New Zealand will be covered by one of the following Workforce Development Councils: •           Hanga-Aro-Rau – Manufacturing, Engineering ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Rotorua Emergency Housing update
    The Government has announced a suite of changes to emergency housing provision in Rotorua:  Government to directly contract motels for emergency accommodation Wrap around social support services for those in emergency accommodation to be provided Grouping of cohorts like families and tamariki in particular motels separate from other groups One-stop ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Further COVID-19 vaccine and economic support for the Pacific
    New Zealand will be providing protection against COVID-19 to at least 1.2 million people in the Pacific over the coming year $120 million in Official Development Assistance has been reprioritised to support Pacific economies in 2021 Foreign Affairs Minister Hon Nanaia Mahuta and Associate Health and Foreign Affairs Minister Aupito William ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Statement on the escalation of violence in Israel, the Occupied Palestinian Territories and Gaza
    Foreign Affairs Minister Nanaia Mahuta today expressed Aotearoa New Zealand’s grave concern at the escalation of violence in Israel, the Occupied Palestinian Territories, and Gaza. “The growing death toll and the large numbers of casualties, including children, from Israeli airstrikes and Gazan rockets is unacceptable,” Nanaia Mahuta said “Senior officials met ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Trade Minister to travel to UK and EU to progress free trade agreements
    Trade and Export Growth Minister Damien O’Connor announced today he will travel to the United Kingdom and European Union next month to progress New Zealand’s respective free trade agreement negotiations. The decision to travel to Europe follows the agreement reached last week between Minister O’Connor and UK Secretary of State for ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Pre-Budget speech to Business New Zealand
    Kia ora koutou katoa It’s great to be here today, at our now-regular event in anything-but-regular times. I last spoke to some of you in mid-March. That was an opportunity to reflect on an extraordinary 12 months, but also to reflect on how the future was shaping up. In what ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Te Hurihanganui growing with Nelson community celebration
    Nelson is the latest community to join the Te Hurihanganui kaupapa to drive change and address racism and bias in education, Associate Education Minister Kelvin Davis announced today. Speaking at today’s community celebration, Kelvin Davis acknowledged the eight iwi in Te Tau Ihu for supporting and leading Te Hurihanganui in ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Te Hurihanganui Nelson Community Celebration 
    Te Hurihanganui Nelson Community Celebration  Victory Community Centre, Nelson   “Racism exists – we feel little and bad”. Those were the unprompted words of one student during an interview for a report produced by the Children’s Commissioner in 2018. They were also the words I used when I announced the ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Child wellbeing reports highlight need for ongoing action
    The Government has released the first Annual Report for the Child and Youth Wellbeing Strategy and the second Child Poverty Related Indicators (CPRI) Report, both of which highlight improvements in the lives of children as a result of actions of the Government, while setting out the need for ongoing action.  ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Formal consultation starts on proposals for Hawera schools
    Education Minister Chris Hipkins today announced a formal consultation for the future of schooling in Hawera. "Recent engagement shows there is a lot of support for change. The preferred options are for primary schools to be extended to year 7 and 8, or for a year 7-13 high school to ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • He Whenua Taurikura: New Zealand’s Hui on Countering Terrorism and Violent Extremism
    The Government is progressing another recommendation of the Royal Commission of Inquiry report into the terrorist attack on Christchurch masjidain by convening New Zealand’s first national hui on countering terrorism and violent extremism. He Whenua Taurikura, meaning ‘a land or country at peace’, will meet in Christchurch on 15 and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Hundreds of new electric cars for state sector
    Total of 422 new electric vehicles and charging infrastructure across the state sector $5.1 million for the Department of Conservation to buy 148 electric vehicles and install charging infrastructure $1.1 million to help Kāinga Ora buy 40 electric vehicles and install charging infrastructure 11,600 tonnes of carbon emissions saved over ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Apartments give new life to former Trade Training hostel
    A building that once shaped the Māori trade training industry will now revitalise the local community of Ōtautahi and provide much needed housing for whānau Minister for Māori Development Willie Jackson announced today. The old Māori Trade Training hostel, Te Koti Te Rato, at Rehua Marae in Christchurch has been ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Opening of Te Kōti o Te Rato at Rehua Marae, Ōtautahi
    *Check with delivery* It is a great pleasure to be here with you all today. I acknowledge Ngāi Tūāhuriri and the trustees of Te Whatu Manawa Māoritanga o Rehua Trust Board. The opening of six new apartments on these grounds signifies more than an increase in much-needed housing for Ōtautahi. ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Major step to pay parity for early learning teachers
    Certificated teachers on the lowest pay in early education and care services will take another leap towards pay parity with their equivalents in kindergartens, Education Minister Chris Hipkins said in a pre-Budget announcement today. “Pay parity for education and care teachers is a manifesto commitment for Labour and is reflected ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Zealand Wind Energy Conference
    Tēnā koutou katoa Tēnā koutou i runga i te kaupapa o te Rā No reira, tēnā koutou, tēnā koutou, tēnā tatou katoa  Thank you Grenville for the introduction and thanks to the organisers, the New Zealand Wind Energy Association, for inviting me to speak this morning. I’m delighted that you ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Speech to New Zealand Drug Foundation 2021 Parliamentary Drug Policy Symposium
    Speech to Through the Maze: On the road to health New Zealand Drug Foundation 2021 Parliamentary Drug Policy Symposium Mōrena koutou katoa, Tēnei te mihi ki a koutou, Kua tae mai nei me ngā kete matauranga hauora, E whai hononga ai tatau katoa, Ka nui te mihi! Thank you for the opportunity ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt to deliver lower card fees to business
    Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses approximately $74 million each year. “Pre COVID, EFTPOS has ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government support boosts Arts and Culture sector
    Government support for the cultural sector to help it recover from the impact of COVID-19 has resulted in more cultural sector jobs predicted through to 2026, and the sector performing better than forecast. The latest forecast by economic consultancy ‘Infometrics’ reflects the impact of Government investment in keeping people in ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt takes further action against gang crime
    The Government will make it illegal for high risk people to own firearms by introducing Firearms Prohibition Orders (FPOs) that will strengthen action already taken to combat the influence of gangs and organised crime to help keep New Zealanders and their families safe, Police Minister Poto Williams and Justice Minister ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Thousands of MIQ spaces allocated to secure economic recovery
    Five hundred spaces per fortnight will be allocated in managed isolation facilities over the next 10 months, many for skilled and critical workers to support our economic recovery, COVID-19 Response Minister Chris Hipkins and Agriculture Minister Damien O’Connor say. “The Trans-Tasman bubble has freed up more rooms, allowing us to ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Zealand Sign Language Week a chance to recognise national taonga
    This week (10 – 16 May 2021) is New Zealand Sign Language Week (NZSL), a nationwide celebration of NZSL as an official language of New Zealand. “We’re recognised as a world leader for our commitment to maintaining and furthering the use of our sign language,” says Minister for Disability Issues ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Economic resilience provides more options in Budget 2021
    Securing the recovery and investing in the wellbeing of New Zealanders is the focus of Budget 2021, Grant Robertson told his audience at a pre-budget speech in Auckland this morning. "The economy has proven resilient in response to COVID-19, due to people having confidence in the Government’s health response to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Pre-Budget speech to BNZ-Deloitte Auckland Breakfast Event
    Thank you for the invitation to speak to you today, and to share with you some of the Government’s thinking leading into this year’s budget. This will be my fourth time delivering the annual Budget for the Government, though the events of the past year have thrown out that calculation. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Rotuman Language week affirms language as the key to Pacific wellbeing
    The first Pacific Language Week this year  makes it clear that  language is the key to the wellbeing for all Pacific people said Minister for Pacific Peoples, Aupito William Sio. “This round of language  weeks begin with Rotuman. As I have always  said language is one of the pillars of ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Budget delivers improved cervical and breast cancer screening
    Budget 2021 funds a more effective cervical screening test to help reduce cervical cancer rates A new breast screening system that can proactively identify and enrol eligible women to reach 271,000 more people who aren’t currently in the programme. Budget 2021 delivers a better cervical screening test and a major ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • NZ-France to co-chair Christchurch Call Leaders’ Summit
    New Zealand and France will jointly convene the Christchurch Call Community for a leaders’ summit, to take stock of progress and develop a new shared priority work plan. Prime Minister Jacinda Ardern and President Emmanuel Macron will co-chair the leaders’ meeting on the 2nd anniversary of the Call, on 14 ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New South Wales travel pause to be lifted tomorrow
    COVID-19 Response Minister Chris Hipkins says the current travel pause with New South Wales will lift tomorrow – subject to no further significant developments in NSW. “New Zealand health officials met today to conduct a further assessment of the public health risk from the recently identified COVID-19 community cases in Sydney. It has been determined that the risk to public ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • March 15 Collective Impact Board appointed
    The voices of those affected by the March 15 mosque attacks will be heard more effectively with the establishment of a new collective impact board, Associate Minister for Social Development and Employment Priyanca Radhakrishnan announced today. Seven members of the Christchurch Muslim community have been appointed to the newly established Board, ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • More young Kiwis supported with mental health and addiction services
    Nearly quarter of a million more young New Zealanders will have access to mental health and addiction support in their communities as the Government’s youth mental health programme gathers pace. New contracts to expand youth-specific services across the Northland, Waitematā and Auckland District Health Board areas have been confirmed, providing ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New hospital facilities mean fewer trips to Auckland for Northlanders
    Northlanders will no longer automatically have to go to Auckland for lifesaving heart procedures like angiograms, angioplasty and the insertion of pacemakers, thanks to new operating theatres and a cardiac catheter laboratory opened at Whangārei Hospital by Health Minister Andrew Little today. The two projects – along with a new ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Fair Pay Agreements to improve pay and conditions for essential workers
    The Government is delivering on its pre-election commitment to implement Fair Pay Agreements which will improve wages and conditions, as well as help support our economic recovery, Workplace Relations and Safety Minister Michael Wood announced today. Fair Pay Agreements will set minimum standards for all employees and employers in an ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Establishment of the new Māori Health Authority takes first big step
    Sir Mason Durie will lead a Steering Group to provide advice to the Transition Unit on governance arrangements and initial appointments to an interim board to oversee the establishment of the Māori Health Authority. This Group will ensure that Māori shape a vital element of our future health system, Minister ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Cycle trails move up a gear in Central
    Work on new and upgraded cycle trails in Queenstown, Arrowtown and Central Otago is moving up a gear as two significant projects pass further milestones today. Tourism Minister Stuart Nash has announced new funding for the Queenstown Trails Project, and will also formally open the Lake Dunstan Trail at Bannockburn ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government gives households extra help to reduce their power bills
    Nine community energy education initiatives to help struggling New Zealanders with their power bills are being given government funding through the new Support for Energy Education in Communities (SEEC) Programme.   “Last year we committed nearly $8 million over four years to establish the SEEC Programme. This funding will help ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Picton ferry terminal upgrade consent fast-tracked
    The planned upgrade of the Waitohi Picton Ferry terminal has been approved under the fast-track consenting process.  Environment Minister David Parker today welcomed the decision by the expert consenting panel to approve the Waitohi Picton Ferry Precinct Redevelopment Project.    The project will provide a significant upgrade to the ferry facilities ...
    BeehiveBy beehive.govt.nz
    1 week ago