Mr Goff is also expected to open the door to a new top tax rate applying to income above $100,000, while cutting rates on low and middle-income earners, and a greater role for the state in encouraging investment and savings.
It seems that Phil Goff has revealed the key plank in Labour's economic policy for the 2011 election - tax the rich pricks. Whilst that may find favour with the envious, and with those who have grown up believing that the government owes them a living, we question whether in fact it is sound economic policy.
Those on the highest incomes already carry by far the highest proportion of the tax burden. With the increase in GST, it can be argued that they are hit with a double-whammy, given that those on the higher incomes are likely to have more to spend.
Now before we are accused of a conflict of interest here, or even of being rich pricks ourselves, we do NOT earn in excess of $100k, the threshhold that Phil Goff is targetting. We'd like to, but our business will have to continue to grow in order for that to happen. Then again, under a Labour government, would it be worth it? It's little wonder that people look for legitimate ways to park a proportion of their income.
So it's safe to say that we won't be endorsing Phil's economic vision. We wonder if he's going to Axe the Tax while he's at it.