We watched a rather soft inteview of Garet Morgan on Breakfast this morning. The "well-known economist" was, of course a member of the Tax Working Group, which reported its findings yesterday. It was pretty apparent from Morgan's comments that he was a dissenter to the overall report, which he scored at 4/10.
But did we hear Gareth Morgan correctly? Did he REALLY opine that the top tax rate for companies, trusts and individuals should be a staggering 45%?
Such a decision would be catastrophic to New Zealand. The tax system is already discriminatory towards those on higher incomes, thanks to Michael Cullen's post-1999 meddling. And in describing Working For Families as "ubiquitous" Morgan may have inadvertently fingered the real problem. Thanks to WFF, many lower income families pay little if any tax after their WFF credits. The wants and needs of everyone are paid for by the labours of a much smaller number. And unfortunately, WFF is now so entrenched that it will be difficult to wind back.
But a 45% top tax rate Gareth? Thank goodness that you were but a voice in the wilderness!