Comments on: The Tax Cuts

By: Matt Nolan

Matt Nolan — Thu, 22 May 2008 21:33:46 +0000

FYI,

NZIER has a substantial calculator up now on its main page, discussion here:

http://tvhe.wordpress.com/2008/05/23/new-zealand-budget-2008-tax-cut-calculator-2/

By: Spam

Spam — Thu, 22 May 2008 08:37:35 +0000

So the 19.5% band has now been replaced with a 21% band?

Well, he will argue that the overall taxation is lower for these people, but the marginal taxation (ie the thing that incentivises – or dis-incentivises people to work harder and earn more), goes UP.

With the WFF increasing as well, I wonder what the marginal tax rates are likely to be.

By: JBA

JBA — Thu, 22 May 2008 05:45:00 +0000

This is already being called ‘the block of cheese budget’.

By: Swampash

Swampash — Thu, 22 May 2008 04:45:41 +0000

Any reason for someone earning decent money in Australia to return home?

…
…
…

Didn’t think so.

By: Nick Archer

Nick Archer — Thu, 22 May 2008 04:41:01 +0000

Been in a meeting all afternoon, so missed Budget so far and just come straight to Stuff website and my thoughts are: Not exactly exciting tax cuts But at least I will be able to buy an extra 16 packets of chewing gum per week compared to 1 in 2005… I’m on a reasonably high pro rata pay rate at the moment but these figures don’t motivate me to want to increase my work ours at all as the amount back into my pocket is negligible… I suppose the same goes for most workers…

Still haven’t seen how beneficiaries benefit yet, if at all…

By: GPT1

GPT1 — Thu, 22 May 2008 04:27:30 +0000

Isn’t the real question whether the govt will survive long enough to deliver the 1 October tax cuts?

By: pete

pete — Thu, 22 May 2008 04:06:13 +0000

Do those Australian numbers rely on the usual trick of ignoring payroll taxes?

By: Adam

Adam — Thu, 22 May 2008 03:49:54 +0000

Once again we see a scorched earth policy from a failed Labour Government.

By: JamesP

JamesP — Thu, 22 May 2008 03:35:23 +0000

Helen is like a broken record on “investment”. I do not think it means what she thinks it means.

By: ross

ross — Thu, 22 May 2008 03:33:25 +0000

It’s interesting that these tax cuts – otherwise called giving us back our own money – will be implemented over a three year period. Cullen must realise that he is very unlikely to be the Finance Minister during that period. Is that why he has gone with this plan, in the full knowledge that he won’t be around to oversee it? The question I keep asking myself is this: why did it take him almost 9 years to realise that tax cuts – or giving us back our own money – was actually the right thing to do?

By: pushmepullu

pushmepullu — Thu, 22 May 2008 03:29:41 +0000

More pathetic flailing from a dying administration

Clearly Sullen Cullen is expecting to be earning $200,000 or more after he is thrown out – yeah right – maybe if he is lucky he will be able to benefit from National’s work-for-the-dole scheme and get a job sorting mail at a post office. Who knows he might have a talent for that, it wouldn’t take much to be greater than his talent as an economist or a historian (anybody with any real sense of history knows where socialism leads)

I can see now why Labour gutted the armed forces… if not for the fact that they were having to scratch and scrape to make ends meet and pass around the hat to buy bullets the patriotic boys and girls of our armed forces might be tempted to take military action to restore democracy

By: david

david — Thu, 22 May 2008 03:17:05 +0000

And he had the unmitigated gall to call the restoration in brackets a “reward” to hard working New Zealanders.

Arrogant prat

By: rolla_fxgt

rolla_fxgt — Thu, 22 May 2008 03:16:59 +0000

Wow I’m so stoked, Mr Cullen’s going to give me a $5 a week increase on my student loan living costs & about $5 a week in tax cut. Yet my rent will probably go up about $20 a week, so yeah I’m so much better off! Yeah Right!

Typical lefty desperation. I’m surprised the tax cuts weren’t on for those who vote labour, or would that of been to much of a bribe.

But then I guess the money for tax cuts was spent on buying a broken down train set, and useless report writers (with probably fake degrees) for useless govt depts

By: Andrew Bannister

Andrew Bannister — Thu, 22 May 2008 03:13:51 +0000

Those tax cuts are a complete waste of money.
They will be virtually unnoticeable.

edit: I would prefer that money to go into my kiwisaver account.

By: Kimble

Kimble — Thu, 22 May 2008 03:12:28 +0000

“I like the fact your table goes up to $200K, considering the average wage is less than $50K and only something like 5% earn over $80K that means for 95% for the population two thirds of your table is just wishful thinking.”

The productive people that are taking off overseas who we want to come back are earning over $80k. Many of the people leaving NZ for good because pay over seas earn over $80k. It is relevant.

By: GPT1

GPT1 — Thu, 22 May 2008 03:04:01 +0000

Even in 2002 that would have addressed a number of issues relating to bracket creep (or fiscal drag) but does seem too little too late now. Nine long, squandered, years.

This government will be remembered as the govt who blew the golden years.

By: jackryan

jackryan — Thu, 22 May 2008 03:02:55 +0000

Great quote from Key, ‘he (Cullen) wants to go into urgency to legislate for tax cuts cause he doesn’t trust himself to enact them later!”

By: Bevan

Bevan — Thu, 22 May 2008 02:57:40 +0000

Will they be happy, DPF says its cynical. Which is code for beating NP at there own game

Sorry ghostie, but these Tax Cuts are six years too late. Not going to make me cancel my tickets. The rates in 2011 should be the starting rates, then further cuts from there.

By: Bevan

Bevan — Thu, 22 May 2008 02:56:08 +0000

DPF, I like the fact your table goes up to $200K, considering the average wage is less than $50K and only something like 5% earn over $80K that means for 95% for the population two thirds of your table is just wishful thinking.

You say wishful thinking, I say aspiration.

By: ghostwhowalks3

ghostwhowalks3 — Thu, 22 May 2008 02:53:59 +0000

Thats a huge drop moving the 39% threshold from 60K to 70K and then to 80K.

Will they be happy, DPF says its cynical. Which is code for beating NP at there own game