web analytics

How big is big enough?

Written By: - Date published: 9:51 am, October 3rd, 2008 - 21 comments
Categories: tax - Tags:

The first round of the tax cuts that National derided as the ‘block of cheese’ tax cuts kicked in on Wednesday. Next week, National will show us how they would do better.

How much on top of Labour’s cuts do you expect National to offer?

Given National has guaranteed all major areas of spending except the Cullen Fund and Kiwisaver, and insists that its infrastructure borrowing won’t fund tax cuts, how would you see those cuts funded?

21 comments on “How big is big enough?”

  1. r0b 1

    National have been promising $50 tax cuts for so long it will be hard for them not to hit the mark. It has to be $50 less Labours existing cuts – I think they can get away with that (though some of their supporters will be disappointed).

    How to fund it? They’re going to close an embassy in Sweden aren’t they? That ought to cover it. (That was sarcasm by the way).

  2. Matthew Pilott 2

    I’m assuming on the order of $300 a week, since these tax cuts will solve people leaving to Australia, the wage gap, increased mortgage prices, increased petrol prices, increased cheese prices, and all forms of crime.

    They’ll be funded by Key inventing the $1000 note.

  3. r0b 3

    They’ll be funded by Key inventing the $1000 note.

    Brilliant. I LOLed.

  4. Dom 4

    I swear I hear Key say the tax cuts would also cut the teen pregnancy rate, global warming and cure cancer.

    r0b – we really need to lobby to keep that embassy in Sweden. That’s where Abba are from after all!

    With English saying the cuts will be ‘close’ to $50 I would say Helen’s prediction (around $18 on top of Labour’s cut?) is about right.

  5. Ianmac 5

    Copy of my letter published in the Marlborough Express recently:
    “Great to read Mr King’s letter (Mr King MP wrote about good things that National will do). One thing that he did not mention is the Tax cut . We look forward to the tax cuts which as Mr Key says often, will be North of $50 per week. That will be great. It will be at least another $2.500 per year per person, and if only a quarter of the work force get this, it will only amount to nationally $2,500,000,000 a year so good on Mr Key. Trust this man to keep his word and lets not get distracted by debate about borrowing to fund the cuts.”

    Lets have very high hopes, because if not realised…… eh?

  6. r0b 6

    That’s where Abba are from after all!

    All together now: “Money money money, must be funny, in a rich man’s world…”.

  7. Righties? No comments? No expectations afte a year of moaning on this blog? Maybe I should grab some of your comments from the post when Labour’s tax cuts announcement came out.

  8. Mick Wrighton 8

    I heard through the grapevine that the Nats were pretty happy that expectations were sufficiently low now, and they’re gonna pull out the big surprise and offer $50 on top of Labour’s tax cut.

  9. Mick. Did you hear how they’re going to pay for it?

  10. vidiot 10

    SP – I do with you would stop referring to the current tax corrections as ‘Tax Cuts’, all they are and will be are inflation adjustments of the PAYE Tax Brackets.

    A true tax cut was the reduction of the company tax rate. A true Tax cut would be reducing GST. A True tax cut would be lowering the rates charged, not just the levels at what the rates are charged. It is YOUR money after all, and they are just giving you a smidgen back.

    As to how they are going to fund it, who knows – the could go down the Aussie road of Luxury Car taxes, Stamp Duty on House Sales, User Pays, etc – I guess we won’t know till they actually put a policy up.

  11. Mick Wrighton 11

    Steve. John Key said yesterday in an article in the Waikato Times (http://www.stuff.co.nz/waikatotimes/4713654a6004.html) that he’d cut two ‘Labour priorities’.

    With the murmurings around KiwiSaver, cutting the government tax credit is one way they can save a decent amount of cash. The second is slightly more elusive… there are only two more areas I reckon John Key can cut and get enough money out of. 1) Labour’s tax cut for the lowest bracket.. it cost a shitload. 2) Cutting contributions to the Super fund….. (and they’d argue that’s not current super entitlements)

    Fast forward would be an option, but they’ve already committed that money to other R&D spending. So next week will be interesting.

  12. vidiot. So how much do you expect National to cut GST etc? How much extra do you expect National to deliver in your pocket each week by whatever mechanism?

    You’re actaully just suggesting creating different taxes to replace the existing ones, and user-pays health and education, cause that works so well in the States.

  13. Matthew Pilott 13

    vidiot, your distinction makes no sense whatsoever.

    Let’s say the 39% rate is pushed out to $1,000,000, the 33% rate to $999,999, and the 21% rate to $999,998.

    Apparently that wouldn’t be a tax cut, but it would be one if the rates were cut to 38.9999999999999999%, 32.9999999999999% and 24.99999999999999% respectively. Even though you would pay far more tax.

    Not seeing your logic I’m afraid.

    I think what you mean is that the reduction in taxes paid is likely to only reflect relative losses due to inflation, and they would need to be larger to qualify as tax ‘cuts’ (even though the tax paid is being cut, and since when was a tax cut only a tax cut if it exceeded inflation. Since the National party handed you your talking points I suppose.).

    So presumably the next round whereby less tax is paid by all will be a tax cut.

  14. Pascal's bookie 14

    “So presumably the next round whereby less tax is paid by all will be a tax cut.”

    Nope, It’ll just be future proofing for inflation.

  15. Matthew Pilott 15

    PB – I like it! And of course if National also adjusts thresholds by a greater amount, it will be transmuted into a REAL tax cut by the weight of sheer will.

    Hey SP – what would it cost to can the 39% rate (and how many people would that benefit)? I reckon that’s going to be in the gun – 38% by April next year, and incremental adjustments thereafter.

    Would be a clever way to go because it’s very symbolic but actually costs people very little individually, so some of the people that benefit would think they’re getting a great deal, and not realise how much they’ve been moaning about a pittance.

  16. vidiot 16

    MP, your math is out 😉 and don’t forget the additional 1.4% tax we all pay for ACC. My logic was that a cut, is a reduction in the rate of tax charged, and yes by shifting the brackets to the levels you have suggested would do the same – but sadly the levels have only been adjusted for INFLATION so net effect is NIL decrease.

    SP – How much do I expect ? Well I don’t actually expect anything, I prefer to look past the bribes & lolly scrambles and vote for the party that will be most beneficial for my family. And for the record, previously I have voted before for Alliance, Labour and National. This year, still not 100% decided, but I am looking for a change, am looking for something a little more in line with what the public seem to want.

  17. vidiot 17

    MP – the issue with cutting the top tax rate down is that it would cost a hell of a lot of revenue for the government. A 1% reduction would be a huge loss of revenue.

    iirc the top 5% of earners pay iirc something like 50% of the tax take. A more symbolic measure would be to shift the top tax bracket to 100K, leave rates the same. Currently the top tax bracket accounts for ~15% of current wage & salary earners, iirc.

  18. Matthew Pilott 18

    There weren’t actually any sums in there that could be constituted as ‘math’. I did get a percentage wrong though, if that’s what you mean.

    You didn’t address my point – it’s not the method by which you should say a tax cut is an inflation adjustment, if that’s your angle, but the scale. Do you agree there? Because if so, the method of tax reduction is irrelevant. As my example shows.

    Do you also realise that the (il)logical conclusion of your argument is that eventually we should pay no tax, because inflation isn’t going to stop. Or at the least, the tax we pay will be so insignificant as to be worthless due to inflation.

  19. vidiot 19

    I guess the solution to the question and the problem is our population.

    What NZ needs is more tax payers (to spread the load and thus reduce each individuals share), now you can either bleed the existing ones dry (and they jump the ditch – which is what we are currently seeing) or you import a bunch of new ones. But there is the Catch 22, there’s no point importing new ones, if there aren’t jobs for them here to do.

    So what are our options ? How do we get another two million people in to NZ ? It’s either via Immigration or a Baby Boom, but I don’t think a baby boom is the right idea.. as we cant really wait 18 years.

  20. Matthew Pilott 20

    This thread keeps eating my comments, and others’, by the look of things. You could be right about cutting top tax rate, I couldn’t be more certain myself vidiot.

    Posted another comment about your last, basicaly saying that more people = more exp for govt, so not a solution – better to have people we’re paying for at the moment (via govt exp) in work (as has been the case lately…) Will see if teh full one appears.

  21. randal 21

    rOb…randal lol’d too!

Recent Comments

Recent Posts

  • National Does the Nation a Disservice
    Deputy Prime Minister Winston Peters today called for National Party and Opposition leader Judith Collins to stop undermining democracy. “New Zealanders are sadly being fed a steady stream of misinformation about the pre-election period from the National Party,” said Mr Peters. “Its effect is to sow doubt about the legitimacy ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Speech at the graduation of Wing 340
    Graduation of Wing 340 2pm, 13 August 2020, The Royal New Zealand Police College [CHECK AGAINST DELIVERY] Introduction Ladies and gentlemen, it is a privilege to be here today to celebrate the graduation of Wing 340. Let us begin by acknowledging the presence of Coalition Government colleague, Police Minister the ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Transitional housing provides much needed support for Taumarunui whānau
                                                                     Transitional housing provides much needed support for Taumarunui whānau   New emergency and transitional homes will help ease a housing shortage in Taumarunui and provide whānau with much needed support, say Māori Development Minister, Nanaia Mahuta and Whānau Ora Minister, Peeni Henare.  The Ministers officially opened five two-bedroom units ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Government announces plan to tackle problem plastics and seven single-use plastic items
    Following the success of the phase out of single-use plastic shopping bags, the Government now has plans to phase out more single-use and problem plastics to reduce waste and protect the environment announced Associate Minister for the Environment Eugenie Sage. The proposals are to phase-out: some hard-to-recycle PVC and polystyrene ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New opportunities for Kōpū marine facilities
    A commercial and industrial site in Thames-Coromandel will receive $8.2 million to revamp its marine-servicing infrastructure and create new economic development opportunities, Infrastructure Minister Shane Jones has announced. This project is being supported from the $3 billion ‘shovel ready’ fund set aside in Budget 2020 to kick-start the post COVID-19 ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • PM comments on Auckland COVID-19 case
    After 102 days we have our first cases of Covid-19 outside of a Managed Isolation or Quarantine facility in New Zealand. Shortly I will ask Dr Bloomfield to set out the details of the case. While we have all worked incredibly hard to prevent this scenario, we have also planned ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Significant investment in Raukūmara Pae Maunga to prevent Raukūmara forest collapse
    An iwi-Crown approach programme to restore the Raukūmara forest on the East Coast of the North Island and boost employment opportunities for whānau, particularly rangatahi/young people, will receive $34 million funding, Minister of Conservation Eugenie Sage has announced. “Raukūmara Pae Maunga is a partnership with Te Whānau-ā-Apanui, Ngāti Porou, and ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New partnership central to delivering more Māori housing
    Government agencies and partners are working closer together to provide more Māori Housing through the Te MAIHI o te Whare Māori – the Māori and Iwi Housing Innovation Framework for Action (MAIHI). MAIHI is a kaupapa Māori approach that drives a system change to give effect and impact on Māori ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Manawatū Gorge replacement highway drives forward
    Site work is soon to begin on Te Ahu a Turanga: Manawatū Tararua Highway, the project to replace the former SH3 route through the Manawatū Gorge, Transport Minister Phil Twyford said today. Phil Twyford was today in Woodville at the signing of a formal agreement by members of the Alliance ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Pacific Ministers meet to discuss regional economic priorities
    The Pacific Islands Forum Economic Ministers Meeting (FEMM) begins today and will focus on the major economic and social impacts of COVID-19 on the Pacific.  FEMM is an important congregation of Economic Ministers and senior officials from around the region, and for the first time, the annual meeting will be ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Formal apology and payment to George Nepata
    Cabinet has approved a formal apology and ex gratia payment to former soldier George Nepata, announced Defence Minister Ron Mark. This payment is to recognise the New Zealand Defence Force’s failure to provide Mr Nepata with a safe system of work in April 1989 when, as a result of an ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Report into Iain Lees-Galloway’s expenditure
    A report undertaken by Ministerial Services into Iain Lees-Galloway’s ministerial expenditure has found no evidence of any inappropriate transactions or spending. Ministerial Services undertook a line by line review of all his expenditure, including staff and spouse expenses for the period 1 January 2019 to 30 June 2020.  “I commissioned ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Managed isolation charges to start 11 August
    Managed isolation charges for returnees will come into force from 12.01am Tuesday 11th August, after they passed their last cabinet milestone today, Housing Minister Megan Woods said. “The new charging system balances the rights of New Zealanders to return home and helps reduce pressure on the managed isolation and quarantine ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Update on New Zealand and the Cook Islands travel bubble
    The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Henry Puna have welcomed the completion of phase one in the establishment of a travel bubble between New Zealand and the Cook Island. Negotiations on the text of an ‘Arrangement to Facilitate Quarantine-Free Travel ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • One-stop ‘jobs and training’ shop goes live
    The Government has launched a new online, phone and onsite service to help New Zealanders connect to a range of employment support and products for workers and businesses affected by COVID-19, announced Minister of Education Chris Hipkins and Minister for Social Development Carmel Sepuloni. Connected.govt.nz is a one-stop-shop for jobseekers, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • MSD security guards to be paid Living Wage
    Security guards contracted to the Ministry of Social Development will be paid at least the Living Wage from next month supporting the Government’s commitment towards fair pay and employment conditions, announced Minister for  Social Development Carmel Sepuloni.   “MSD was  among the first government agencies to pay its employees the living ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New strategy to ensure nature thrives
    The Minister of Conservation Eugenie Sage today launched Te Mana o te Taiao, the Aotearoa New Zealand Biodiversity Strategy - a way forward that envisions Aotearoa New Zealand as a place where ecosystems are healthy and resilient, and people embrace the natural world. “Many of New Zealand’s plants and wildlife species ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Provider Languages Fund will support Pacific Wellbeing approach
    “Pacific languages, cultures and identity are essential to the health, wellbeing and lifetime success of our Pacific peoples and their communities in Aotearoa. The strength and resilience of Pacific Aotearoa is not only vital to their own prosperity but integral to the prosperity of all New Zealanders, and is particularly ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19: More funding for schools and boost to construction sector
    ·       $38 million to help schools cover unexpected costs related to COVID-19 ·       $69 million upgrade for online learning ·       $107 million contingency funding to support school construction suppliers facing additional costs due to the lockdown. The Government is releasing $214 million from the COVID-19 response and recovery fund to ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Stay safe on the tracks – Rail Safety Week
    Despite the Government installing safety upgrades around the country, people should still take care around rail crossings, said Transport Minister Phil Twyford launching Rail Safety Week. Phil Twyford said installing safety infrastructure is crucial, but we are encouraging people to be more careful around trains too. “We’re making good progress ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government backs Manawatū social housing project
    The Government is providing a cash injection to help Palmerston North City Council complete a programme to provide 78 social housing units for vulnerable tenants. The $4.7 million to build 28 units in the Papaioea Place redevelopment comes from the $3 billion set aside for infrastructure in the Government’s COVID-19 ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Major funding boost for Predator Free Banks Peninsula
    A pest free Banks Peninsula/Te Pātaka o Rākaihautū is one step closer with a $5.11 million boost to accelerate this project and create jobs, announced Conservation Minister Eugenie Sage in Canterbury today. “This is a game changer for this ambitious project to restore the native wildlife and plants on Ōtautahi/Christchurch’s doorstep ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Major investment for indoor sports in Hawke’s Bay
    A Government grant of $6.4 million will expand the Pettigrew Arena in Taradale with new indoor courts of national standard. “The project is likely to take 18 months with approximately 300 people employed through the process,” Grant Robertson said. “The expansion will increase the indoor court space up to 11 ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New infrastructure for Far North tourist town
    The Far North tourist destination of Mangonui is to receive Government funding to improve waterfront infrastructure, open up access to the harbour and improve water quality, Infrastructure Minister Shane Jones has announced. A total of $6.5 million from the $3 billion set aside in the COVID-19 Response and Recovery Fund ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government remains committed to Women’s Cricket World Cup
    The Government has re-affirmed its commitment to supporting the hosting of the ICC Women’s Cricket World Cup, which the ICC has delayed from 2021 to 2022. “This is obviously a disappointing decision for cricket players and fans around the world and for the White Ferns and their supporters here at ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Green light for Te Awa River Ride in $220m nationwide cycleways investment
    Cyclists and walkers will now have a safer way to get around Taupō, Tūrangi, and between Hamilton and Cambridge, with funding for shared paths and Te Awa River Ride, Associate Minister of Transport Julie Anne Genter announced today. “The Te Awa River Ride is the latest part of massive growth ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Six major ‘shovel-ready’ cycleways funded in Christchurch
    Six major cycle routes will be completed in Christchurch thanks to funding from the Government’s investment in shovel-ready infrastructure as part of the COVID-19 recovery Associate Minister of Transport Julie Anne Genter announced today. $125 million will be invested to kick-start construction and fund the completion of the following cycleway ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New Police facilities for Whanganui
    Plans are underway for a brand new state-of-the-art hub for Whanganui’s justice and social agencies, following confirmation the ageing Whanganui Central Police Station is to be replaced. Police Minister Stuart Nash has announced $25 million in new infrastructure spending to improve facilities for the wider community, and for staff who ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Relativity adjustment for Waikato-Tainui and Ngāi Tahu
    An adjustment payment has been made to Waikato-Tainui and Ngāi Tahu under the relativity mechanisms in their 1995 and 1997 Treaty of Waitangi settlements, Minister for Treaty of Waitangi Negotiations Andrew Little announced today. The latest payments to Waikato-Tainui and Ngāi Tahu are $2,700,000 and $2,600,000 respectively to ensure the ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Auckland rail upgrades pick up steam
    Deputy Prime Minister Winston Peters and Transport Minister Phil Twyford today kicked off the start of the Auckland NZ Upgrade Programme rail projects which will support over 400 jobs and help unlock our biggest city. Both ministers marked the start of enabling works on the third main rail line project ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • PGF support for Wairoa creates jobs
    The Provincial Growth Fund (PGF) investment of $3.78 million in Wairoa will create much needed economic stimulus and jobs, Under-Secretary for Regional Economic Development Fletcher Tabuteau announced today. PGF projects announced today include: $200,000 loan to Nuhaka Kiwifruit Holdings Ltd (operated by Pine Valley Orchard Ltd) to increase the productivity ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Public and Māori housing to trial renewable energy technology
    Tenants in public and Māori housing may be benefiting from their own affordable renewable energy in future – a fund to trial renewable energy technology for public and Māori housing has today been announced by Energy and Resources Minister Megan Woods and Associate Minister for Housing (Māori Housing) Nanaia Mahuta. ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • $2.7m for Hokianga infrastructure
    Hokianga will receive $2.7 million to redevelop four of its wharves and upgrade its water supply, Regional Economic Development Minister Shane Jones has announced. Far North District Council will receive $1.8 million from the Provincial Growth Fund for the work on the wharves. “The work will include the construction of ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • New fund to support housing and construction sector
    A $350 million Residential Development Response Fund is being established to support the residential construction sector and to minimise the economic impact from COVID-19, the Housing Minister Dr Megan Woods has announced. “The Residential Development Response Fund will help to progress stalled or at-risk developments that support our broader housing ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government investment to boost Auckland’s community recycling network
    As part of a broader plan to divert waste from landfill, the Government today announced $10.67 million for new infrastructure as part of the Resource Recovery Network across the Auckland region. “This key investment in Auckland’s community recycling network is part of the Government’s Infrastructure Reference Group ‘shovel ready’ projects ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Te Papa transformation starts at Cameron Road
    The Government is investing $45 million in the first stage of an ambitious urban development project for Tauranga that will employ up to 250 people and help the region grow, Urban Development Minister Phil Twyford announced today. Phil Twyford says the funding has been allocated out of the $3 billion ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Low-emissions options for heavy transport a step closer
    Getting low-emission trucks on the road is a step closer with investment in infrastructure to support hydrogen vehicles, the Energy and Resources Minister Megan Woods has announced. The Infrastructure Reference Group has provisionally approved $20 million for New Plymouth company Hiringa Energy to establish a nationwide network of hydrogen-fuelling stations. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New training centre to upskill workers
    A new trades training centre to upskill the local workforce will be built in the South Waikato town of Tokoroa through funding from the Government’s COVID-19 Response and Recovery Fund, Education Minister Chris Hipkins and Regional Economic Development Minister Shane Jones have announced. The Government will contribute $10.84 million from ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Subsequent children legislation to change
    The Government has agreed to repeal part of the Oranga Tamariki Act subsequent children provisions, Minister for Children Tracey Martin announced today. “There are times when children need to go into care for their safety – the safety and care of children must always be paramount,” Minister Martin said. “But ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Funding to expand mental health support for Pacific peoples
    A $1.5 million boost to grow primary mental health and addiction services for Pacific peoples in Auckland, Hamilton and Canterbury will lead to better outcomes for Pacific communities, Associate Health Minister Jenny Salesa says.  Pasifika Futures has received funding to expand services through The Fono, Aotearoa New Zealand’s largest by ...
    BeehiveBy beehive.govt.nz
    1 week ago