The Standard line: Tax cuts
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12:21 pm, October 30th, 2008 - 23 comments
Categories: election 2008, labour, national, tax, The Standard line -
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[update: download this (tax-and-kiwisaver-calculator) simple excel table that will calculate tax cut and Kiwisaver losses under Labour and National, and the difference, for you and your family. No other calculator has included Kiwisaver losses]
So, you’re talking with someone about politics and they say something really dumb and wrong and you know it’s wrong but you don’t have the arguments and facts at your fingertips to make a decisive point. That’s where our election series, The Standard line, comes in. The info you need in bite-size form. Today: tax cuts
Points:
– tax cuts are not the only thing you should judge a party on. Tax is used to provide public services – there is a trade-off between tax cuts and better public services
– don’t just consider your personal situation. Just because one party offers you a bigger tax cut is it worthwhile if others you care about lose out?
– If you, like 1 million people, earn less than $14,000 the tax cuts from both parties are the same
– If you, like around 500,000 people, earn $14,000 to $24,000 you get more from Labour’s tax cuts
– If you, like around 500,000 people, get Working for Families, Super, or a benefit and your income is less than $44,000 your tax cut is larger under Labour because you wouldn’t get National’s ‘independent earner’ rebate
– if you, like 850,000 people, are in Kiwisaver you will be better off with Labour because National would cut Kiwisaver to pay for its tax cuts.
– Most of the money in Labour’s cuts will go to low and middle incomes, most of the money in National’s cuts would go to the wealthy. Just 10% of people get 40% of the money in National’s cuts.
– A family with children, each parent earning $35,000 and in Kiwisaver would be $52 a week worse off under National compared to Labour’s cuts. John Key would be $87 a week better off.
– National’s next round of tax cuts would come in 2009, a year before Labour’s next round, but there is nothing in that second round for anyone earning less than $48,000 and most of the money would go to people earning more than $70,000.
– Labour’s tax cuts are already passed into law. Labour has said they will not be cancelling their next rounds of cuts
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Today the government announced a $30m cut to Te Ahu o Te Reo Māori- a programme that develops te reo Māori among our kaiako. “This announcement is just the latest in an onslaught of attacks on te iwi Māori,” said Te Pāti Māori Co-Leader Rawiri Waititi. ...2 weeks ago
- Govt set to break promise on Dunedin Hospital
The Green Party is calling on the Government to honour its promise to Dunedin and build its new hospital to full capacity. ...2 weeks ago
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The non-announcement in Dunedin today had Ministers leaving broken promises and a likely severely diluted hospital build in their wake. ...2 weeks ago
- Release: Labour welcomes UAE trade deal
The New Zealand Labour Party welcomes the Comprehensive Economic Partnership Agreement (CEPA) signed today with the United Arab Emirates (UAE). ...2 weeks ago
- Release: Hundreds more jobs cuts on housing frontline
The Government has shown its true intentions for the public service and economy – it’s not to get more public servants back to the office, it’s more job losses. ...2 weeks ago
- Release: Govt not addressing health workforce crisis
The National Government is hiding the gaps in the health workforce from New Zealanders, by not producing a full workforce plan nearly a year into their tenure. ...2 weeks ago
- Release: Government cuts fair pay for bus drivers
The Government has cut funding for bus drivers to get paid fairly for the work they do, Labour transport spokesperson Tangi Utikere said. ...2 weeks ago
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Today, the Crown Mineral Amendment Bill was read for the first time, reversing the ban on oil exploration off the coast of Taranaki. It was no accident that this proposed law change was read directly after the Government started to unravel the ability of iwi and hapū Māori to have ...2 weeks ago
- Landlord govt finds new way to undermine public housing
Proposed cuts to Kāinga Ora reflect a failure to fully commit to fixing the housing crisis. ...2 weeks ago
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Te Pāti Māori spokesperson for Justice, Tākuta Ferris, has hit out at the Government, demanding the Crown prove its rights to the foreshore, following the Marine and Coastal Area Amendment Bill, passing its first reading. "Māori rights to the foreshore pre-exist the Declaration of Independence, Te Tiriti o Waitangi, and ...2 weeks ago
- NZ must urgently help whanau in Lebanon
The Government must immediately help evacuate New Zealanders and Lebanese whanau caught up in the current conflict unfolding across south Lebanon. ...2 weeks ago
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The Green Party vows to reinstate the oil and gas ban and revoke permits when it returns to government following the coalition’s introduction of legislation to reopen offshore oil and gas exploration this afternoon. ...2 weeks ago
- Brakes put on contractor and consultant spending
The brakes have been put on contractor and consultant spending and growth in the public service workforce, Finance Minister Nicola Willis says. “Workforce data released today shows spending on contractors and consultants fell by $274 million, or 13 per cent, across the public sector in the year to June 30. ...2 hours ago - Accounts confirm need for spending restraint
The Crown accounts for the 2023/24 year underscore the need for the Government’s ongoing efforts to restore discipline to public spending, Finance Minister Nicola Willis says. The Financial Statements of the Government for the year ended 30 June 2024 were released today. They show net core Crown net debt at ...2 hours ago
- Minister to co-chair carbon market negotiations at COP29
Climate Change Minister Simon Watts will chair negotiations on carbon markets at this year’s United Nations Climate Change Conference (COP29) alongside Singapore’s Minister for Sustainability and Environment, Grace Fu. “Climate change is a global challenge, and it’s important for countries to be enabled to work together and support each other ...8 hours ago
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A new confirmation of payments system in the banking sector will make it safer for Kiwis making bank transactions, Commerce and Consumer Affairs Minister Andrew Bayly says. “In my open letter to the banks in February, I outlined several of my expectations of the sector, including the introduction of a ...10 hours ago
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Associate Health Minister with responsibility for Pharmac David Seymour is pleased to see Pharmac continue to increase availability of medicines for Kiwis with the Government’s largest ever investment in Pharmac. “Pharmac operates independently, but it must work within the budget constraints set by the Government,” says Mr Seymour. “When our ...10 hours ago
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The Government has released its long-term vision to strengthen New Zealand’s disaster resilience and emergency management, Emergency Management and Recovery Minister Mark Mitchell announced today. “It’s clear from the North Island Severe Weather Events (NISWE) Inquiry, that our emergency management system was not fit-for-purpose,” Mr Mitchell says. “We’ve seen first-hand ...16 hours ago
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Today’s cut in the Official Cash Rate (OCR) to 4.75 per cent is welcome news for families and businesses, Finance Minister Nicola Willis says. “Lower interest rates will provide much-needed relief for households and businesses, allowing families to keep more of their hard-earned money and increasing the opportunities for businesses ...1 day ago
- Sport NZ asked to update Transgender Inclusion Guiding Principles
Sport & Recreation Minister Chris Bishop has asked Sport NZ to review and update its Guiding Principles for the Inclusion of Transgender People in Community Sport. “The Guiding Principles, published in 2022, were intended to be a helpful guide for sporting bodies grappling with a tricky issue. They are intended ...1 day ago
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The Coalition Government is restoring confidence to the rural sector by pausing the rollout of freshwater farm plans while changes are made to ensure the system is affordable and more practical for farmers and growers, Associate Environment Minister Andrew Hoggard and Agriculture Minister Todd McClay announced today. “Freshwater farm plans ...1 day ago
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- New Zealand Climate Change Ambassador appointed
Climate Change Minister Simon Watts has announced the appointment of Stuart Horne as New Zealand’s Climate Change Ambassador. “I am pleased to welcome someone of Stuart’s calibre to this important role, given his expertise in foreign policy, trade, and economics, along with strong business connections,” Mr Watts says. “Stuart’s understanding ...1 day ago
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Health Minister Dr Shane Reti and Associate Health Minister Casey Costello have announced a pilot to increase childhood immunisations, by training the Whānau Āwhina Plunket workforce as vaccinators in locations where vaccine coverage is particularly low. The Government is investing up to $1 million for Health New Zealand to partner ...1 day ago
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- Further action to tackle driver licence wait times
The Government is taking further action to tackle the unacceptable wait times facing people trying to sit their driver licence test by temporarily extending the amount of time people can drive on overseas licences from 12 months to 18 months, Transport Minister Simeon Brown says. “The previous government removed fees for ...2 days ago
- Strengthened cyber security support for New Zealand businesses
The Government has reaffirmed its commitment to ensuring New Zealand is a safe and secure place to do business with the launch of new cyber security resources, Small Business and Manufacturing Minister Andrew Bayly says. “Cyber security is crucial for businesses, but it’s often discounted for more immediate business concerns. ...2 days ago
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Investment in Apprenticeship Boost will prioritise critical industries and targeted occupations that are essential to addressing New Zealand’s skills shortages and rebuilding the economy, Tertiary Education and Skills Minister Penny Simmonds and Social Development and Employment Minister Louise Upston say. “By focusing Apprenticeship Boost on first-year apprentices in targeted occupations, ...2 days ago
- Funding boost to reduce wait times at Palmerston North ED
Health Minister Dr Shane Reti has announced a funding boost for Palmerston North ED to reduce wait times and improve patient safety and care, as well as new national standards for moving acute patients through hospitals. “Wait times in emergency departments have deteriorated over the past six years and Palmerston ...2 days ago
- Funding boost to reduce wait times at Palmerston North ED
Health Minister Dr Shane Reti has announced a funding boost for Palmerston North ED to reduce wait times and improve patient safety and care, as well as new national standards for moving acute patients through hospitals. “Wait times in emergency departments have deteriorated over the past six years and Palmerston ...2 days ago
- Significant investment for affordable housing with Waikato-Tainui
Mehemea he pai mō te tangata, mahia! If it’s good for the people, get on with it! A $35 million Government investment will enable the delivery of 100 affordable rental homes in partnership with Waikato-Tainui, Associate Minister of Housing Tama Potaka says. Investment for the partnership, signed and announced today ...3 days ago
- Unlocking the potential of ethnic businesses
This week’s inaugural Ethnic Xchange Symposium will explore the role that ethnic communities and businesses can play in rebuilding New Zealand’s economy, Ethnic Communities Minister Melissa Lee says. “One of my top priorities as Minister is unlocking the economic potential of New Zealand’s ethnic businesses,” says Ms Lee. “Ethnic communities ...3 days ago
- New Zealand marks anniversary of 7 October
Prime Minister Christopher Luxon and Deputy Prime Minister and Foreign Minister Winston Peters are renewing New Zealand’s calls for restraint and de-escalation, on the first anniversary of the 7 October terrorist attacks on Israel. “New Zealand was horrified by the monstrous actions of Hamas against Israel a year ago today,” Mr Luxon says. ...4 days ago
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Kia uru kahikatea te tū. Projects referred for Fast-Track approval will help supercharge the Māori economy and realise the huge potential of Iwi and Māori assets, Māori Development Minister Tama Potaka says. Following robust and independent review, the Government has today announced 149 projects that have significant regional or national ...4 days ago
- Fast-track to boost renewable electricity
The Fast-track Approvals Bill will list 22 renewable electricity projects with a combined capacity of 3 Gigawatts, which will help secure a clean, reliable and affordable supply of electricity across New Zealand, Energy Minister Simeon Brown says. “The Government has a goal of doubling New Zealand’s renewable electricity generation. The 22 ...4 days ago
- Fast-track to drive transport projects forward
The Government has enabled fast-track consenting for 29 critical road, rail, and port projects across New Zealand to deliver these priority projects faster and boost economic growth, Transport Minister Simeon Brown says. “New Zealand has an infrastructure deficit, and our Government is working to fix it. Delivering the transport infrastructure Kiwis ...4 days ago
- Fast-track projects released
The 149 projects released today for inclusion in the Government’s one-stop-shop Fast Track Approvals Bill will help rebuild the economy and fix our housing crisis, improve energy security, and address our infrastructure deficit, Minister for Infrastructure Chris Bishop says. “The 149 projects selected by the Government have significant regional or ...4 days ago
- Ruakākā recreation centre opened
A new multi-purpose recreation centre will provide a valuable wellbeing hub for residents and visitors to Ruakākā in Northland, Regional Development Minister Shane Jones says. The Ruakākā Recreation Centre, officially opened today, includes separate areas for a gymnasium, a community health space and meeting rooms made possible with support of ...6 days ago
- Extra Government support for farmers and growers in Southland and parts of Otago
Agriculture Minister Todd McClay, and Rural Communities Minister Mark Patterson announced up to $50,000 in additional Government support for farmers and growers across Southland and parts of Otago as challenging spring weather conditions have been classified a medium-scale adverse event. “The relentless wet weather has been tough on farmers and ...6 days ago
- Government welcomes move to delay EU Deforestation Regulation
Trade and Agriculture Minister Todd McClay today welcomed a move by the European Commission to delay the implementation of the European Union’s Deforestation Regulation (EUDR) by 12 months, describing the proposal as a pragmatic step that will provide much-needed certainty for New Zealand exporters and ensure over $200 million in ...6 days ago
- Response to Ministerial Inquiry into School Property
The Government is taking decisive action in response to the Ministerial Inquiry into School Property, which concludes the way school property is delivered is not fit for purpose. “The school property portfolio is worth $30 billion, and it’s critically important it’s managed properly. This Government is taking a series of immediate actions ...6 days ago
- New Government support for residential construction market announced
The Government has announced a new support programme for the residential construction market while the economy recovers, Housing Minister Chris Bishop and Building and Construction Minister Chris Penk say. “We know the residential development sector is vulnerable to economic downturns. The lead time for building houses is typically 18 ...6 days ago
- New appointment to the EPA board
Environment Minister Penny Simmonds has confirmed the final appointee to the refreshed Environmental Protection Authority (EPA) board. “I am pleased to welcome Brett O’Riley to the EPA board,” Ms Simmonds says. “Brett is a seasoned business advisor with a long and distinguished career across the technology, tourism, and sustainable business ...7 days ago
- Strengthening resilience with critical road improvement projects
The Government has approved a $226.2 million package of resilience improvement projects for state highways and local roads across the country that will reduce the impact of severe weather events and create a more resilient and efficient road network, Transport Minister Simeon Brown says. “Our Government is committed to delivering ...7 days ago
- Doubling road rehabilitation this summer to prevent potholes
Kiwis will see fewer potholes on our roads with road rehabilitation set to more than double through the summer road maintenance programme to ensure that our roads are maintained to a safe and reliable standard, Transport Minister Simeon Brown says. “Increasing productivity to help rebuild our economy is a key ...7 days ago
- Sir Jerry Mateparae appointed in Bougainville post-referendum moderator role
Foreign Minister Winston Peters has welcomed the announcement of Sir Jerry Mateparae as an independent moderator, to work with the Government of Papua New Guinea and the Autonomous Bougainville Government in resolving outstanding issues on Bougainville’s future. “New Zealand is an enduring friend to Papua New Guinea and the ...1 week ago
- Latest census data highlights New Zealand’s growing ethnic diversity
The latest 2023 Census results released today further highlight New Zealand’s growing ethnic and cultural diversity, says Ethnic Communities Minister Melissa Lee. “Today’s census results are further evidence of the increasingly diverse nature of our population. It’s something that should be celebrated and also serve as a reminder of the ...1 week ago
- FamilyBoost payments make ECE more affordable
Parents and caregivers are now able to claim for FamilyBoost, which provides low-to-middle-income families with young children payments to help them meet early childhood education (ECE) costs. “FamilyBoost is one of the ways we are supporting families with young children who are struggling with the cost of living, by helping ...1 week ago
- South Pacific defence meeting fosters collaboration
This week’s South Pacific Defence Ministers’ Meeting (SPDMM) has concluded with a renewed commitment to regional security of all types, Defence Minister Judith Collins says. Defence Ministers and senior civilian and military officials from Australia, Chile, Fiji, France, New Zealand, Papua New Guinea and Tonga gathered in Auckland to discuss defence and security cooperation in the ...1 week ago
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Associate Police Minister Casey Costello has welcomed the Police announcement that recruitment wings at the Police College will be expanded to 100 recruits next year. “This is good news on two fronts – it reflects the fact that more and more New Zealanders are valuing policing and seeing it as ...1 week ago
- Speech to the Minerals West Coast Forum
Introduction Good morning! What a pleasure to be back in the stunning West Coast at one of my favourite events in the calendar. Every time I come back here, I’m reminded of the Coast’s natural beauty, valuable resources, and great people. Yet, every time I come back here, I’m also ...1 week ago
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Health Minister Dr Shane Reti welcomes new data from Health New Zealand, saying it demonstrates encouraging progress against the Government’s health targets. Health New Zealand’s quarterly report for the quarter to 30 June will be used as the baseline for reporting against the Government’s five health targets, which came into ...1 week ago
- China removes block on Australian lobster, in last big bilateral trade breakthrough
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra China has removed the last significant trade barrier it imposed on Australia, with a timetable to resume full lobster imports by the end of the year. Anthony Albanese announced the breakthrough after a meeting ...54 mins ago - East Asia Summit: Luxon talks global conflict in relaxed setting
Talking crises over coffee, the leaders of NZ, Australia and Canada convened at a in a meeting on the sidelines of the East Asia Summit. ...2 hours ago - Decision to remove Luxon artwork from Trade Me ‘weird’ – artist
The artist behind a painting depicting Christopher Luxon in a fleshy tunnel says he is genuinely surprised by its removal. ...2 hours ago
- Collins Targets ‘Armchair Admirals’ Over ‘Misogynistic’ Attacks
Collins said she heard female defence force officials were being "abused in the street" over the Manawanui sinking. The HMNZS Manawanui, aground in Samoa. ...2 hours ago - Australia’s child support system can put single mothers at risk of poverty and financial abuse
Source: The Conversation (Au and NZ) – By Kay Cook, Professor and Research Director, School of Arts, Social Sciences and Humanities, Swinburne University of Technology KieferPix/Shutterstock Australia’s child support system can not only increase women’s poverty, but can actually facilitate financial abuse, according to our recent research. Child support ...2 hours ago
- Fast Track nod for Northport expansion a breach of Te Tiriti o Waitangi – hapū
Northport's container terminal expansion is one of 149 projects the government has selected for fast tracking. ...3 hours ago
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Source: The Conversation (Au and NZ) – By Andrew Norton, Professor in the Practice of Higher Education Policy, Australian National University The federal government’s controversial plan to limit international student numbers is now almost certain to win parliamentary approval. But it looks like there will be some changes to the ...4 hours ago
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The Prime Minister remains confident a free trade agreement with India can still be struck this term. ...4 hours ago
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Collins said she heard female defence force officials were being "abused in the street" over the Manawanui sinking. ...7 hours ago
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There appears to be a clear conflict between Charlie Girl's individual welfare and DOC's breeding program objectives. The Animal Welfare Act prioritises the wellbeing of individual animals, which should take precedence over general conservation goals. ...7 hours ago
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It will act on all 14 recommendations made in a damning Inquiry into last year's devastating and deadly weather events. ...13 hours ago
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Source: The Conversation (Au and NZ) – By Carina Truyts, Associate Research Fellow (Deakin) and Research Officer, Monash University Getty Images Women seeking publicly funded fertility treatment in New Zealand must have a body mass index (BMI) under 32, according to clinical priority assessment criteria for access to assisted ...13 hours ago
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Great stuff.
I love it how Johnny Friendly used the mean wage of 47k to talk about the ‘average earner’ as opposed to the median of 40k. Granted mean is a method of calculating an average.., but everyone knows a mean gets skewed by extreme numbers and outliers.
There is a trade-off between tax cuts and spending on public services. This government has proven that there is bugger all correlation between spending on public services and better public services.
Just because something is legislated for doesn’t mean it will happen and Labour have promised a “mini budget” in December. I would 100% expect some weasel-out on the tax cuts even it’s the plausible deniability of introducing a new tax or increasing GST. Trust? Ha.
I agree that taxes should be used to fund public services, but not jaunts to Melbourne to dig up dirt.
Have you worked out what proportions of people would be better/worse off?
I can’t find the Kiwisaver figures I need to do it but they must be around somewhere…
Is that the best you can do NeillR?
Best? Due to Labour not only having shot itself in the foot, but blowing both of them off at the same time – it’s all i need to do.
NeillR. who says taxpayer funds were used? Williams is employed by the Labour Party,not the government and I understand he is self-funding, doesn’t even draw a salary – he made a ot of money in advertising or something.
Punters should be saying:
“tax cuts are the promises of a visionless and intellectually bankrupt people….unless Labour offers them”.
who says taxpayer funds were used?
Didn’t a couple of the articles actually say that members of the Labour Research Unit also went to Melbourne ? [link http://www.stuff.co.nz/4744149a6009.html ] If so that is your hard earned tax dollars being pissed up against the wall SP, they are state funded. And as for Mike himself, self funded my bottom, he’s on the board of directors of 4 or so SOE’s, talk about a very cosy arrangement. Pity Georgina doesn’t get the same perks.
[no, the article does not sa they went to Melbourne, that’s Key’s claim and he’s well-known for adding to the facts to make a good story. SP]
Neillr: It has been reported in the Press that Williams went to Aussie at his own expense. Funny how pure speculation like yours can be reported as though it is fact yet speculation on Key integrity is to be despised. Figure that.
Nicky Hager has an interesting post over on Pundit re the hidden agenda:
http://www.pundit.co.nz/content/theres-actually-only-one-john-key-just-not-the-one-on-show#comment-251
the best deal is still with Labour
next bids please
[no, the article does not sa they went to Melbourne, that’s Key’s claim and he’s well-known for adding to the facts to make a good story. SP]
Where did that kettle get to?
Where did that kettle get to?
Out the back, smoking pot with Nandoor & Norm ?
And my apologies, they didn’t get a Melbourne trip, he was supported by members of the 04 team.
Labour president Mike Williams spent several days last week reading court documents in Melbourne, backed up by Wellington-based members of the party research unit.
Still a waste of tax dollars tho.
http://media.apn.co.nz/webcontent/image/jpg/sign10.jpg
And man those signatures look so same same – not
Vidiot – the top one and the one bottom right. Not the one on the bottom left as you’re clearly thinking.
Great – under National my family will be better off by $125 per week under a National Government. Of course not the only reason to vote for the National / Act team – but a very compelling one. On the minus side what is Cullen’s secret agenda in his December mini Budget – the one he will never get to deliver.
the reality is that I want to give my vote to a party that endorses self responsibility, and is pro-business – I will never support a government whose 2008 election policy is to smear and seems to be lacking any substantive policy that will pull NZ out of the current economic crisis
That doesn’t really seem a balanced piece on tax cuts at all.
That doesn’t really seem a balanced piece on tax cuts at all.
That’s because you’re tilting your head to the right – try taking that big old chip off your shoulder and you might find things straighten up a bit…
The excel spreadsheet… can you choose what rate you put into kiwisaver at? Because that could be important
Of course, for those of us who think that tax cuts stimulate the economy and lead to an increased actual tax take (in $ not %) then there’s no way to convince us of the trade-off line. Bugger.
hmm even earning $250K if I pay into Kiwisaver I’m better off under Labour – what were national thinking?
Monty: Great – under National my family will be better off by $125 per week under a National Government. Of course not the only reason to vote for the National / Act team
That’s odd, because previously you have said that paying less tax was the only thing that mattered to you, and (several times) “screw the poor”.
Camryn: Of course, for those of us who think that tax cuts stimulate the economy and lead to an increased actual tax take (in $ not %)
Those holding such a belief do so as an article of faith, and in the face of the evidence to the contrary.
Sarah. I’m not sure what world you’re living in but I’m not trying to provide a balanced peice on taxes, I’m trying to provide leftwing arguing points on tax
No but you could have at least provided an honest excel sheet purporting to allow people more options around kiwisaver.