Well the budget is out and across the country the public are looking at their tax cuts and asking “is that it?” and this is at a time that economists are very nervous about the inflationary impact of such a large package of cuts and anything bigger means cutting services or significantly increasing borrowing.
The only way to answer is “yes, that is all”. Tax cuts are not and never will be the answer to rising costs. While Key talks about a half a billion being available for more cuts if the public service is capped (effectively a cut in real terms) he knows full well that, as Steve pointed out some time ago, that means all of fifty cents more if it’s spread equitably. National can offer much more to the wealthy (and from Key’s talk about using cuts as “incentive” for people to earn more that may well be their plan) but that will come at the expense of the other 95% of the population.
For the last five years National has embarked on a cynical public relations campaign to convince people that everything will be ok if we just cut taxes because they don’t want to talk about the real way to raise incomes: higher wages. And given their determination to deny New Zealand’s workers higher wages I can’t really blame them for this approach.
I can only hope that now people can see the cruel hoax National has played on them they’ll start focusing on real ways to raise incomes.