Kiwis breathe a sigh of frustration, not relief, over distant meagre tax cuts

c Tom Scott, Stuff.co.nz 2008


In a story in yesterday's NZ Herald Mr Cullen said tax cuts in October would bring "relief".

"From October 1 all New Zealanders will get a tax cut that should provide some relief from rising prices." Michael Cullen 16.7.08

Well, I don't get tax cuts from that date because I'm self employed and 10s of thousands of other Kiwis are as well.

It seems bizarre that Dr Cullen would trumpet "tax relief" when Kiwis need it now. They actually needed it years ago. Labour decided to stop taking as much tax off us in the budget this May but the 6 month wait makes Labour's decision political rather than any sort of benevolent government helping out the proletariat. On average the October cuts are equal to less than one block of cheese.

National would have brought their tax cuts in with urgency and unlike Dr Cullen's election bribe, tax cuts were something that the National Party have been pushing for years. Dr Cullen doesn't believe in tax cuts, he thinks the State should spend your money.

“We just don't believe in tax cuts - it's against our fundamental philosophy - after all we are socialists and proud of it.”— Dr Michael Cullen


We can however have a NZ$ 2 billion decision to buy 17th century technology, KiwiRail, made on the fly instantly, lose $1.5 billion of shareholder money by stopping the sale of the Auckland Airport, and increases in road user charges and an extra tax on petrol for all, both increasing cost to the average kiwi and more than wiping out any tax cut come October. But we cant have the meagre tax cut now?

In fact the amount of Government promised election spending so far announced by Labour puts the tax cuts in the shade. We will all be a least $30 pr week behind thanks to Cullen's "generosity" in the wake of an election.

Remember this when you cast your ballot this November:

My view is that tax cuts are largely offered as a political bribe, not because of beneficial economic or social effects.

— Dr Michael Cullen



Related Political Animal reading

Michael Cullen speaks with forked tongue
Cullen's history on tax cuts comes back to haunt him
Wednesday Political Soup: Edition 3 2nd story down - Let them eat cake
Labour and their last crusade



c Political Animal 2008