The kindest tax cut of all : Te Tare no tak'e

Good news for Kiwis today and another sign of a massive change in direction for the National Government when compared to the losers of the last 9 years.

Up to 250 jobs at the Inland Revenue department will go. A very small cut by any means because the department employs more than 5000 but nevertheless a good start to the year.

What this means in real terms is that Kiwis, especially businesses, will be able to operate their lives with less interference from these sorts of people.

That clearly means more time spent on actual work rather than IRD paperwork and as a consequence of that more productivity, something New Zealand desperately needs.

This cut is a reflection of this Government's emphasis on spending less taxpayer money and extracting less of that tax from their pockets in the first place.

It is only a good thing and any criticism is mainly from those that want to see higher taxes, more state involvement and constant interference in our lives.

My only criticism is that the cut was about 1000 too low.

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c Political Animal 2009

More new taxes from Labour

Labour call it a "levy" but it is a tax.

In the face of a serious local recession, a probable global recession , or worse, we see today Labour allowing local councils to pass a 10c a litre fuel tax for Auckland:

Ms King congratulated the Auckland Regional Council and Rodney District Council for their successful proposals.

NZ Herald

Ms King, the Transport Minister, passed the tax in the face of massive public opposition and warnings from Auckland business leaders that 10c a litre tax would have a drag on the economy and an increase in inflation through increased business costs and associated price rises for goods and services.

When pressed by Larry Williams on his afternoon Newstalk ZB show today that the first tranche of the tax, a 2c increase in July 2009, would cause economic pressure, Ms King answered that petrol increased by that much in a week sometimes and implicated therefore that consumers wouldn't notice it.

Some do Ms King and at 10c a litre when fully implemented that is a significant drain on an economy in deep trouble, an economy Treasury's books say will be in deficit for 10 years!

How about changing tack when economic circumstances deteriorate?  That Anette, is what business does.

Of course this 10c tax is on top of approximately 20c a litre for Labour's dopey "climate change" legislation.

Simply more out of touch stuff from our dopey politicians.

c Political Animal 2008