Looking forward to Tax Cuts this election?

If you’re a New Zealander like me, you’ll probably know that there’s an election coming up, and good old Don Brash of the National Party, like so many politicians at election time, is advocating tax cuts. Apparently the Government can afford it, assuming they get rid of some of the less-important functions of the government.

Public Address have put together a handy little tax break calculator! You enter your salary, and punch in the percentages of tax you want to pay, and it tells you how much money per week you’ll be scoring. w00t! NZD$202 extra a week 😀

However, it goes forward to explain how much money it’ll need to recoup from giving the tax break to the nation. For me it was NZD$3,935 Millionbut luckily it goes on to offer suggestions of things it could get rid of, you know, to keep the government running smoothly. You know, the controversial things, like hip-hop tours, woman’s affairs, artist’s dole.

For example: Getting rid of the Wananga O Aotearoa? Sure, but what about all the students? — they’ll still be interested in tertiary education — onto student loans they go…
Largest 1-year funding the Wananga ever recieved: $239 Million
Cost of a third of ex-Wananga students going elsewhere: $220 Million
Net Money Recovered: NZD$19 Million.
Still to Recover: NZD$3,916 Million.

Ooo big savings. NOT.

Seriously, I think I can safely assume that National is unable to give a significant tax break. As the fellows at Public Address said:

There’s a word for that, and it’s nothing so prim as “baloney.”

For the record, I’m happy with how I’m being taxed. Maybe the rich should be taxed more, and the poor taxed less. What do you think?

7 thoughts on “Looking forward to Tax Cuts this election?

  1. Personally I’m happy with the level of tax, what I am unhappy about is the level of services people on higher incomes get for their tax. My father for example has work long and hard all his life, he’s trained over 150 people in his industry (which he has fully funded) and on paper his income is high, so he pays a high tax rate. Of course I have no problem with the high tax rate (neither does he), but when he has to go to the doctors and its $50ish and others pay much less I fail to see how this system is fair.

    Also I do think that company tax should come down. To me, if companies have more cash in hand it means they can grow, which has to be a good thing for our economy? All and all I think that keeping most tax as it is and spending it more effectively is a more sensible move, but thats just me.

  2. I think that companies with smaller revenues should come down, for the reasons you mention above — growing the economy, tourism, new business, stuff like that.

    I think corporates with uber-revenues who pay a large percentage of their employees just barely over minimum wage should go up, because they should be helping people and the community out, not just their shareholders.

  3. I don’t thing higher earning individuals should be taxed as much as they are, especially when may have another 10% taken off the top for student loans. If you work hard and earn more money why should you pay more proportionally? (Of course you pay more tax nett, but why should the proportion increase?) It’s like a dis-incentive for hard work. I would prefer to see an increase in GST to cover a lower middle and upper bracket income tax. That way you are taxed on what you spend, not what you earn. That would encourage productivity and saving.

  4. Good point about disincentives for high-earning individuals… I do like your idea of increasing GST, assuming you lower individual taxes and make it harder for companies to write GST off…

  5. Andy

    Why is it all about tax cuts? That’s such a short term view. 

    I am more interested in the long term viability of the country. I worry that mortgaging the country by borrowing to the tune of 3 billion in order to offer tax cuts, not doing anything to relieve student loan debt or address the flight of skilled graduates to London and the US and the withdrawal of NZ from the Kyoto protocol are bad news for future generations of NZers. It’s all very well to say that you can fund tax cuts by cutting back on public servants, but then we’ll have those public servants on the dole. Either way we pay for them through our taxes – personally i’d prefer people to be in a job rather than on the dole.

    And exactly which public services are surplus to requirements? I hear that to get your tax back, you will claim it on a tax return . . . waitaminnit! The IRD got rid of tax returns for most people several years ago. Tax returns are just a dim, bad memory. Does this mean we will all go back to filling in tax returns again? Will the IRD have to hire more people to cope with the sudden increase in workload? Maybe we could make the savings by dumping a few over-priced MPs. MPs are paid by my taxes, so doesn’t that make them public servants too?

    I’m also not keen on Dodgy Don telling us that he will take NZ where the US goes! Mind you he will probably deny saying that, now.

  6. Jena

    I hate being bribed with my own money. I’m paying tax and I’m doing OK. Unemployment is no longer an issue for NZ or me. I’m not voting to fill my pocket – I’m voting for the society I wish to live in.
    If voters cannot see that Don Brash is the new vehicle for the far-right, they need not come moaning to me when their paltry tax cuts do not cover the cost of their increased health care, privitised education, sale of state assets and corresponding increased costs etc.
    I’m sick of babying people who in political terms are either ignorant or selfish.
    Vote for whomever you choose – but bear the consequences silently.

  7. Women health reproductive…

    A woman gives birth to a child and therefore she is considered to be the originator of life. She is responsible for providing a healthy living and her general health as well as women health reproductive is of prime importance. A rise in number of women…

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