Voters have a clear choice this election – tax cuts for the already rich or more spending on social services. There’s a good summary by Bernard Hickey on Newsroom – How Labour plans to spend $17bn and stay in surplus
The key to Labour’s spending plan is its decision to forgo tax cuts costing almost $8 billion over the next four years, and to reduce slightly the size of surpluses and debt reduction planned by the National Government.
Here’s where it plans to spend the money over four years:
1. $8 billion more on health than the Government planned in Budget 2017, including paying back what Labour said was $293 million worth of underfunding due to inflation and population growth and an unannounced plan to spend $6.7 billion on “delivering a modern health system.”
2. $5 billion on its families package, which includes spending more on Working For Families, offering a baby bonus and paying beneficiaries and superannuitants a winter energy payment.
3. $4 billion more on education, including its plan for three years free tertiary education, increased funds to put fully qualified teachers in early childhood education centres and $1.8 billion for an unannounced plan for ‘delivering a modern education system.”
4. $2.4 billion extra in contributions to the New Zealand Superannuation Fund, which Labour would restart three years earlier than the current National Government.
5. $1.4 billion on research and development tax credits, regional development and its ‘Ready For Work’ scheme to offer 10,000 young people six months of on-the-job training.
6. $2 billion to fund Kiwibuild in the first year of Government.
Hickey continues with a similar summary of how the spending will be paid for.
There are desperate needs in the underfunded health and education sectors that could be addressed by this plan. But the Nats are still arguing that they need their $20 / week tax cut more than we need health and education. According to Morning Report the Nats are calling Labour’s budget “a plan to waste more money”. Yeah tell it to the patients on waiting lists. Tell it to the parents of kids in overcrowded classrooms. Tell it to the people who can’t afford private healthcare and education.
Powered by WPtouch Mobile Suite for WordPress