Well the signals are going out to say the future tax cuts may not eventuate. The reason being given is the economic down turn. There seems some sort of irony in this as the tax cuts were one of the major planks put forward in the last election campaign. Another inferred justification is that the initial tax cuts which were meant to be the first of three are not stimulating the economy as it was thought they would. People have not rushed out and spent their extra money preferring to save the money or use it to service debt. I also think that many have used the money simple to help bridge the ever widening gap between the out goings and the income received.
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.
Bright New Future Looking Very Foggy
National has clearly shown it is not the unyielding disciplined team who will be able to lead New Zealand into a Bright New Future. Two shadow minister making public statements that were seen by the director of Victoria University’s Samoan studies programme as ‘ridiculous and foolish’. Lockwood Smith’s comments –“ that Asians have small hands that make them better at picking fruit and that some Pacific workers needed to be taught to use toilets and showers” were seen by the Prime Minister as ridiculous and demeaning. Comments by another National MP about $3 daily road tolls left many people feeling that their tax cuts would be easily taken back by these road tolls. There has been an apology but you are left feeling – can we vote for this party when they once again show they are not unified or the tight team of professionals they purport to be.
Nationals Tax Cuts a Fizzer
For some weeks National has promised $50+ tax cuts. Today’s announcement by John Key clearly shows it is a fizzer. To add insult to injury National plans to kick the stuffing out of Kiwi Saver to pay for the tax cuts that they are proposing. National must think we are all naive and can be hood winked by fancy rhetoric and slick “car sales” like talk. Kiwi Saver is supported by 800,000 New Zealanders who will almost with out exception not be at all impressed John Key. When will people learn to think about and plan for the future.
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…..