Wednesday, July 26, 2006

Labour's tax cuts

So Labour is talking about tax cuts? Now there’s a strategy to try to win the next election – given that the current one nearly lost it for them last time. It is a vindication for National, that Labour is now adopting a small part of its policies and all of the leftwing naysayers either eat their words about tax cuts, or can oppose Labour. However, it does appear to be because United Future and NZ First demanded it – you wouldn’t be getting this with the Greens and Maori Party. (Peter Dunne and Winston will go on about this endlessly no doubt)
However, no reason to get too excited, and few are (the state sector unions predict doom and gloom because their solution to prosperity is to take more of your money to "invest" in what bureaucrats do) it is mostly about cutting company tax from 33 to 30% (nice but only a first step and the top personal rates should also follow it), targeted tax credits (more picking winners) and changing depreciation rates. Dr Cullen has said this also could mean changing thresholds for income tax – hardly exciting stuff since he announced that in last year’s Budget. Remember the 70c a week tax cut? Maybe it will be a dollar - wow.
So I’m underwhelmed, at best it shows that even Labour sees some merit in tax cuts – the question is whether you want hardly any (Labour), some (National), quite some (ACT), or a lot (Libertarianz).
although with it being reported that National would "probably" cut company tax, you have to wonder! Why the "probably"?

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