08 April 2008 - John Key, House Question on tax cuts

[NZNats]

Filmato nel Parlamento della Nuova Zelanda. Grazie per visitare!

[EnigmaNZ1]

Tax reductions are termed bad for various reasons due to their percieved inflationary effects etc. But they always refer to the cut as one big wack, whats wrong with incremental cuts over a long time period. The chewing gum cut for low income, why is that a problem, they have other income supports in place, but that thinking helped torpedo the last cuts. Thank you Nats for that. The thresholds have made it not worthwhile to do overtime when no penals are there to balance higher tax.

[EnigmaNZ1]

Ah, tax cuts. I'd like to see thresholds tied to the average wage, reasoning, in good years the wage rises in real terms so proportion of tax to the economy reduces, in a downturn wages stagnate, so tax thresholds stay stable, with a fixed floor stopping a reversal. The opposite happens with inflation adjusted rates, good times means low inflation and stagnated thresholds, poor times could mean high inflation leading to thresholds rising faster than the country can afford at that time.