Thursday, February 7, 2008

Michael Cullen's history on tax cuts comes back to haunt him

Michael Cullen's education as a Dr of History clearly lacked the basic tenant that as history is more often than not written down for posterity it can often come back to haunt the history maker:

"We just don't believe in tax cuts - it's against our fundamental philosophy - after all we are socialists and proud of it".
A hardly stunning admission by Michael Cullen a while back but hard to fathom considering his announcement of personal tax cuts in an address to the Auckland Chamber of Commerce today.

Cullen trumpeted 4 billion dollars of tax cuts annually and gave examples as: " working for families, business tax cuts and Kiwisaver.

Of course Working for Families is not a tax cut but welfare, Kiwisaver isn't a tax cut either and business tax cuts were long ago gobbled up by Labour Government imposed business taxes like increased holidays, Kiwisaver contributions and administration, Government imposed energy hikes and a whole range of other taxes too long to list here.

If there are any tax cuts this year or in the following years by Labour, they will be linked to a Government agency and distributed that way not by the usual method of more cash directly in the hand.

Strangely enough, a 66c across the board tax cut was promised in the 2005 budget, coincidently another election year, but Labour broke their promise after reelection because they commented that economic conditions didn't allow such a cut.

Now 3 year latter, and with a crippled stagnant economy tax cuts are going to happen?

The truth is though Labour were and never will deliver proper tax cuts because they are philosophically opposed to them:

"Tax cuts are a path to inequality. They are the promises of a visionless and intellectually bankrupt people".

— Helen Clark, speech to 2000 labour Party Conference

On the contrary though, tax cuts show true vision and are not only "intellectually enriching" but in the long term they enhance every sector of society, socially and economically.

What is "intellectually bankrupt" though is promising personal tax cuts in election year.

The facts are that any time is a good time for tax cuts. They stimulate business and economies and have an upside long term, not a downside on the tax take by governments, and are especially relevant during the tough economic times we are now going through.

Tax cuts have been affordable since Labour came to office almost 9 long years ago and the excuses used to dodge such cuts have been coming as thick and as fast as Parekura Horomia on speed.

Cullen sites several: "we will have to cut Government services", "tax cuts lead to inflation and higher interest rates", "we will have to borrow money to fund tax cuts".

All clearly bollocks.

What has led to inflation and the highest interest rates in the Western world is reckless Labour Party spending, cut that and you can afford to return stolen taxpayer funds.

Ditto borrowing and government services, cut back Cullen, New Zealanders have, and have had to borrow because of your tax and spend mentality.

Finally, Cullen hinted today that any tax cuts must be "fair" and he clearly meant that those who earn't high salaries, probably wont be getting a tax cut.

Those earning higher salaries don't traditionally vote Labour anyway so they will be left out if there are personal tax cuts, but in an ironic twist, those receiving welfare through "working for families" benefits, mainly middleclass voters who could vote either National or Labour, maybe getting some of the taxes back that they have been paying to fund WFF in the first place!

Cruel but true.

I will leave you dear readers with a quote Robin Hood probably originally made:

"Tax cuts are a very sort of blunt weapon to redistribute income"

— Mike Williams, President of the Labour Party

To sum it up Labour's real attitude to tax cuts. Firstly Labour clearly don't believe in them and they truly believe that the high taxes they have imposed are there to "redistribute income".

You certainly can't vote for a party like Labour, The Green Party, The Maori Party, NZ First, Jim Anderton because they all fundamentally agree with Cullen, the Labour Party philosophy on tax cuts and cannot be trusted to deliver as part of a Labour-led Government in 2008.

Vote for either Act or National, they have promised real tax cuts and have done for years.

Related Political Animal reading

Pointing fingers in the playground
At least Robin Hood was honest
The black economy makes sense
Labours State Control out of control

c Political Animal 2008

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