The details that Guyon Espiner has on One News last night about the CGT were too specific for them not to have been leaked to him ahead of Goff's tax announcement in the next week or so. Labour has to raise tax revenue from somewhere; their promises released so far are of additional spending of around $7 billion per annum, and the election is still more than four months away. That money has to come from somewhere, and it's inevitable that the top tax rate will rise again. Labour has banged on time and time again that "John Key's rich mates" got huge tax cuts last year. They ignore the fact that now, after two rounds of tax cuts as promised by National, three-quarters of New Zealanders now pay a top tax rate of 17.5%.
We were listening to Newstalk ZB as we drove home last night. Larry Williams was talking with Janet Wilson and another woman whose name we didn't catch. But one of the women (we can't say which, as we didn't hear all the piece, and couldn't work out who was who) described the likely increase in PAYE as "Labour's chip-on-shoulder tax", which we reckon is a very accurate description.
Why does Labour so despise those who get ahead in life, and are able to earn good salaries? Some of these are even Labour Party supporters; public servants, school principals, even MP's themselves. Where is the carrot to get ahead if all you have to aspire to is a life of paying higher taxes?
Mike Hosking summed things up well in his editorial piece on Newstalk ZB this morning with this comment:
So at least you can argue that although any new tax is not a good tax, at the very least it levels the playing field, and will earn some coin for a party that has a major ‘where is the money coming from?’ question to answer.
The other up side is it provides contrast for the election. You have choice, you want to pay more tax, Labour is for you. You want to pay less, try National.
Quite so. We mentioned above that the faces had changed, but that the message hadn't. Here's what we were referring to:
The choice is ours, come 26 November.