Nats in line for big $$ from own tax reforms

• Marty G
• 14 years ago
• Categories: economy, tax

“More than two-thirds of the National line-up have beneficial interests in trusts (entities that the Inland Revenue believes are responsible for a $300 million hole in tax revenues at the current 33 per cent tax rate).”

“even before the Buckle team reported, Prime Minister John Key said he was not in favour of broad-brush capital gains taxes. Key contends they are difficult to implement, something the IRD agrees with and now also the Buckle group.

How fortunate.

A glance at Key’s own list of pecuniary interests shows he would be a sitting duck for a capital gains tax regime given his tally of top-class homes and the share portfolio which he has tucked away in a blind trust. His colleagues (and party supporters) will have breathed a sigh of relief that the Buckle group did not make an overwhelming recommendation to pursue this tax.”

“If capital gains tax is a political no-goer, the next most obvious option is a land tax (basically a bit like an extra rates bill which goes to the Government rather than local authorities). The political downside for the Government is this tax could badly affect some farmers, retirees and Maori land trusts. Federated Farmers has already started lobbying against the tax. Grey Power and the Maori federations will not be far behind.

The MPs’ register shows most of the Maori Party’s MPs have beneficial interests in Maori land trusts. They’ve already scored a sweetheart deal to back emissions trading legislation. Their chances for a repeat performance have to be good.”

– What’s the point of power if you can’t line your own pockets? that seems to be the attitude of the Maori Party and National’s corrupt ministers

“National insiders suggest that increasing GST is more likely”

– GST is a regressive tax, hitting people on lower incomes hardest and less on people like National MPs and their supporters. But the Nats would rather make the poor pay than put tax on themselves.

Of course, O’Sullivan misses the elephant in the room. Thanks to their salaries, all the National, ACT, and Maori Party MPs, and many of their wealthy backers, are in line for massive windfalls from dropping the top income tax rates to 30%.

Cutting the top rates would net an ordinary MP $5,540 a year, ministers outside Cabinet would get $11,404 a year, ministers inside Cabinet would be in line for $14,556, Bill English would pocket $17,196, and John Key would get an incredible $26,500 tax cut – nearly half of Kiwis earn less than that in a year. And that’s just from their Parliamentary salaries, every $1,000 of extra income would yield another $80 in tax cuts. While the 78% of people with incomes below $48,000 get absolutely nothing.

It’s quite clear whose interests the Government is acting in. And it’s not yours and mine.