We’ve said this before but, seeing as BNZ chief economist Tony Alexander is in the Herald this morning saying ‘the October 1 tax cuts won’t cover inflation’, it’s worth restating: tax cuts are not and can not be the method by which people’s incomes are risen for inflation.
Tax cuts cannot be cut year on year on a scale sufficient to compensate for inflation. Even if you were willing to slash government spending to free up the funds, most people don’t pay enough tax to compensate for inflation for more than a few years.
If you want an increase in your income to cover inflation, you need to get a pay rise.
If you want to get a bigger pay rise than you can negotiate yourself, join your union.