No you see them - now you don't. Our Finance Minister come Illusionist, The Amazing Dr Michael Cullen looks like he's about to do it again - this from today's NZ Herald:
http://www.nzherald.co.nz/category/story.cfm?c_id=280&objectid=10505458
First-up it was the infamous "chewing gum" tax cuts which we were due to receive on 1 April this year. Now it seems as though Cullen's will has prevailed, and that he will not have to preside over the introduction of personal income tax cuts during his nine year stint as Finance Minister, despite being cash-rich for much of that time. Which is, of course, another reason why the Labour government must be routed in November this year.
1 comment:
So who is surprised?
Inflation - thanks to government spending - is out of control.
We know what is required: to keep the likes if F&P in NZ, we need a much lower currency, much lower corporate tax rates and much much lower government spending (and of course wages commensurate with productivity)
All of these are not a quick fix - but they will "finish the job":
* corporate tax rates to 0%.
* stop all benefits except war pensions
* get out of state-controlled schools & hospitals
* drop the top tax rate to 30%
* repay all government debt to lower interest rates
none of these changes will be inflationary -- and once they have been made, and inflation is under control, then we could consider personal tax cuts
(ideally, going to the Monaco Model) - say a flat 20% up to $50,000, then zero percent thereafter
(so no-one pays more than 10,000).
Actually the ecnonomically preferred model would just be a truly flat 5,000 poll tax - but I doubt that would ever fly even with an ACT majority government.
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