Gareth Morgan is keen to position himself as an anti-Winston Peters “peacemaker”, shoring up a Government on either side of the political divide without introducing the instability of NZ First.
The firebrand economist and newbie politician released a press release attacking Peters on Monday, along with a costing of his “pork barrel promises”.
Morgan contends Peters’ policies – including the writeoff of student debt, removal of GST from food, and free GP visits for pensioners – would cost $10b every year, with no indication of where that money would come from, other than a vague promise to reduce tax evasion
Winston does indeed promise things left right and centre, and says they’re all bottom lines, but the reality is they are unaffordable.
Promising stuff you know you can’t deliver is a form of deception.
How much would tax rates have to increase to cover Winston’s $10 billion a year of spending. Here’s how you could do it:
- Increase GST from 15% to 24%; or
- Increase top tax rate from 33% to 66%; or
- Increase bottom tax rate from 10.5% to 25% and second bottom tax rate from 17.5% to 25%; or
- Increase corporate tax rate from 28% to 63%
Now this is only $10 billion a year that Winston has promised so far. By the election it will probably be $20 billion. And if you vote for him, well don’t come crying when your taxes shoot up.