With an election pending and the economic situation in a state of flux it is hard plan for the future. We need to do some serious thinking and planning for the future. It is essential that all decisions made are considered and based on the best possible data available. It is certain that we won’t get it all right but we need to aim to get as much as possible right.
Will the worm turn?
April 1 is the date for the implementation of Tax Cuts. This was a major plank in the National parties election manifesto. There now seems to be a large number of low income earners who will get no tax cuts and may even face tax increases (perhaps 65%). The tax cuts are aimed at middle and high income earners and are meant to stimulate the economy.
Is the recession over or just on hold?
The economists, who comment for the news media, today stated that “there are indications that the current down turn in the economy is over”. They predict the New Zealand economy will move in a positive direction from now, on gradually recovering in the medium to long term. The more stable price of oil, the expected change in the weather, and the pending tax cuts all being contributing factors. Perhaps the main factor that is holding things back, is the imminent general election. Polls to date have suggested that a new right government will be elected. The recent lack of political acumen on the part of opposition members and their new leader have tended to shadow this inevitability. MMP means that unless the governing party gains a very large portion of the vote they can not govern alone. For the right to form a coalition may be difficult particularly now the leader has ruled out one of the more significant minority parties…..