Another day, another announcement. Today, it’s National’s “half billion package (0ver four years) of policies to help small and medium sized businesses, during the economic downturn,” at the heart of which is “a suite of 11 tax changes costing $480 million” (over four years). Details here at Kiwiblog.
Q: Costing who?
A: Costing the government.
Q: So is this actually a “cost,” then?
A: No, not unless you think that $480 million was government’s in the first place.
I won’t go over the 11 tax changes that make up the derisory promise to refund such a small amount of the money small businesses make since Mr Lineberry does a pretty good job on that. Instead I’d like to note that nearly a third involve changes to the iniquitous Fringe Benefits Tax, and ask readers if they can wrack their brains and remember who it was who introduced the whole iniquitous FBT regime, which effectively and at a stroke reduced many people’s take-home pay. Anyone?