On his blog Colin Espiner rejects the argument that National’s tax cuts are “unfair because they give more to those who earn more” saying “I’m afraid that’s the nature of progressive taxation”.
That’s what National politicians say too. It’s wrong.
There are infinite tax cuts one could devise that don’t give more to the well off. Cut the bottom rate or move up the bottom threshold and everyone – at least, everyone who earns at least as much as the top of the bottom bracket – will get the same size cut. In fact one could make tax cuts that only go to people on low incomes by having a negative tax or tax credit that gets smaller as income gets higher.
Repeating National’s spin doesn’t make it true.
– Nic W