Wednesday, May 09, 2007

"We are cutting tax for the fifth year. We believe in low taxes. It's a good thing."

"We are cutting tax for the fifth year. We believe in low taxes. It's a good thing." Sadly, that's not the New Zealand finance minister talking, it's his Australian counterpart.

With yesterday's budget announcement by Treasurer Peter Costello, Australians get to enjoy enjoying getting back $31.5 billion of their own money! On the NZ scale that represents a tax refund of over $6 billion!

How would you feel about that?

Sadly, there is little expectation of anything remotely similar happening here next week, despite even the IMF advising the Clark Government "to focus on tax cuts and curb spending to help the economy through a difficult period." There's just no hope that's going to happen, whichever major party is in power.

The best hope for New Zealanders having less taken out of our pockets is a trial balloon floated last week for a give-back-with-one-hand-take-with-the-other 'tax cut' that will be linked to a compulsory retirement savings scheme -- giving back with one hand, and taking back with the the other.

There is little hope that either major party here even realises whose money it is that forms the enormous surpluses piled up every financial year.

LINKS: Cut taxes, spending, says IMF - NZ Herald
Cullen says big surpluses no longer politically sustainable - NBR

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3 Comments:

Anonymous Robert Winefield said...

Strictly speaking is isn't giving back your own money. They are merely undertaking to steal less next year.

And that point of view paints Clark and Key in an even worse light.

5/09/2007 09:06:00 am  
Anonymous Duncan Bayne said...

A few things I've noticed in my brief time as an Australian:

Australians are more judgemental than NZers, and that's a good thing. A headline in the local paper re. a convicted murderer read simply "ROT IN PRISON."

Australians are less keen on tax than NZers. Hell, the Labour party here has been criticising the Liberals (our equivalent of the National party, but lots better) for insufficient tax cuts!

I'm starting to like Australia a lot.

5/09/2007 12:12:00 pm  
Anonymous Sus said...

Really, Duncan? I was in Sydney again earlier this yr and the letters to the ed (not to mention the majority of articles) in the SMH were as wet as. I remember thinking that they were even worse than those in the Auck herald.

The IPCC report had just come out and it was Green City. It made for painful reading.

As for tax cuts and the ALP, I remain skeptical. He knows that mortgage rates are close to Aussie hearts; I believe that's what kept Howard in last time; and so he dares not talk typically Labour big govt spending. In other words he's doing a Key: doesn't want to rock any boats.

"Australians are less keen on tax than NZers".

With a top income tax rate of 47% (as it was - is that still the case?), I should think so!

5/09/2007 02:13:00 pm  

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