Cullen’s scorched earth policy has succeeded
April 24th, 2009 at 9:38 am by David FarrarThis week’s Dispatch from St Johnnysburg is online at NBR. Some extracts:
Bill English all but confirmed this week that the tax cuts planned (and legislated) for 2010 and 2011 will be cancelled.
They are a casualty of not just the global recession, but a victim of Michael Cullen’s “Scorched Earth” policy, otherwise known as his 2008 Budget.
Dr Cullen was gleeful in the hours after his final budget. He smirked and gloated that he had left no money for National. In fact he agreed in an interview with Gordon Campbell that his budget was a “booby trap” for National. …
You can reduce taxes if you keep spending under control, but Dr Cullen increased spending in his final budget by a massive $4.5 billion, at the same time as he also delivered (finally) tax cuts which when fully implemented would reduce revenue by around $3 to $4 billion a year.
Comments and feedback can be done over at NBR.
Related posts:
- Talking down interest rates
- He’s spent it all!
- Will Cullen cancel the tax cuts?
- Will Labour reveal their tax increases policy before the election?
April 24th, 2009 at 9:52 am
Labour have left us with the fallout of a welfare bubble, due to their lax fiscal discipline, irrational exuberance, and willingness to bundle up obligations and sell them on to the next government.
Vote: