Comments on: BUDGET 2010: Neither Fair Nor Fixing

By: Herodotus

Herodotus — Thu, 20 May 2010 20:49:56 +0000

David. heard you on stream (delayed as I forgot the time) IGreat idea, it was for me radio without pictures not sure what happened there. Also the sound was like having 2 sound systems on at once and youg et the doubling up effect. I am sure with this idea continuing these issues be they caused by me or just initial issues will be sorted out. o-)

By: Herodotus

Herodotus — Thu, 20 May 2010 05:13:12 +0000

What a great budget for all. (Until I read the small print).
For now we will see for Labour to succeed a complete strategy what values Lab holds dear, what the constituency values, if Phil is an extremely competient politician that can evolve into a leader, how good is his strategy team and if senior Lab politicians have what is needed for this country to progress. For if any of these are lacking then there could be a few less MP’s than today representing Lab.
And finally that pork barrel politics that was evident in the last few elections, I do not think will succeed in winning the 2011 or 2014 elections.
We will need a vision, the follow up plan and how this will be implemented and what the costs are and where they will be funded from. i.e. A compreshensive manifesto.
This is a challange but if you succeed there are the spoils, if there is failure will we have 5 Rugby World Cups to know what that is like. But the world will still be there is 2014 to implement plans that benefit the country.

By: Rebecca

Rebecca — Thu, 20 May 2010 03:32:06 +0000

One last thing before I take off:

This link on Stuff is a great way to compare blue vs red in terms of the 2008 budget vs 2010…quite interesting

http://www.stuff.co.nz/business/budget-2010/budget-2010-multimedia

By: SPC

SPC — Thu, 20 May 2010 03:31:37 +0000

Rebecca the R and D moves are of significantly less value than Labour’s tax credits and Fast Forward programme. The major flaw is having to apply for money (which limits the total amount involved and delays progress) – rather than just doing it and then claiming the tax credit. Their approach really cuts out smaller companies and thus new start-ups – increasing their financial risk.

By: Spud

Spud — Thu, 20 May 2010 03:28:07 +0000

@Tracey 3.17 – Good point!

“last year the Govt cut the amount they spent on teacher costs, it’s been reinstated by this announcement. Admission of a boo-boo perhaps” – Now there’s a shocker!

Woah – the live coverage isn’t what I’m hearing through my computer!

By: SPC

SPC — Thu, 20 May 2010 03:27:41 +0000

Tracey, it’s not tax nuetral – another broken promise.

Despite gaining money from the depreciation allowance change as well as the GST increase – there is still a $460M pa tax deficit from the “tax nuetral” changes.

And that does not include a full year cost odf the company tax cut.

By: Rebecca

Rebecca — Thu, 20 May 2010 03:25:51 +0000

Oh, so the extra spending is just reinstating what they cut last time?

Mind you, based on NACTs view that Labour overspent,some of the cuts be justified – 50% increase from 2005 or whenever Bill English said seems grossly excessive considering that it seemed to translate into a huge increase in the number of public servants employed with a 6 fold increase in those earning more than $100k by 2007/2008…

Yes I would love it if our respected MPs displayed more good sportsmanship – admitting when they were wrong & giving credit where it was due.

I quite surprised by the ferocity of Phil Goff’s counter speech as to my untrained it seemed like a good, fair package & rather than making cuts, sort to correct some wrongs including increasing spending in R & D.

Must go or my husband will fire me!

By: Tracey

Tracey — Thu, 20 May 2010 03:25:06 +0000

I guess we will know by this time next year if the economy grew, if we became more productive…

By: Tracey

Tracey — Thu, 20 May 2010 03:24:21 +0000

“The Government’s coffers are expected to be boosted by at least $2.48 billion over the next four years as a result of changes to property tax, which would then be returned to taxpayers as part of across the board tax cuts.” is another source

spc – heard anything about changes to Trusts? I had the same thought as you about company tax rate… 5% difference between it and top tax rate… going on the Govt’s theory that is an invitation to rort?

By: SPC

SPC — Thu, 20 May 2010 03:21:49 +0000

Politically one should note

The government broke its promise not to increase GST.

The government broke its promise to offer a tax neutral budget change. Their tax changes increased the deficit by $460M a year. That’s $9M a week.

They have effectively cut the health budget over the next 4 years as the $500M allocated is insufficient to cope with demographic change and the introduction of new technology/medicine.

The increase in education is less than inflation, etc.

At an economic level.

The retention of a significant gap between the top rate of income and the company tax – at 28%, maintains the incentive to transfer income into a company (doctors run surgeries through companies to reduce their tax liability etc, some accountants and lawyers probably do to). Many will also turn their trusts into companies – now that trusts will be at a significantly higher rate and are also being investigated for diversion of income from tax.

Allowing Oz banks and Contact and various other foreign corporates to transfer more of their profits out of the economy will only increase our BOP deficit.

There is still not any R and D tax credits to allow smaller company start-ups to grow into companies exporting abroad. Thus people are still directed to non productive investment -property, land, PIE accounts, unit trusts and Suoer funds. There is no encouragement to entrepreneurship, venture capital development and R and D based company start-ups. There is no real change, just placation of existing business interests (investment vehicles and foreign service sector corporates, rather than any new economy or added value development growth).

It’s ideological, not tranmsformational. Just6 more of the same right wing neo-con speak – all sizzle and no substance apart from more money to the boys via tax cuts and more money flowing through banks (and then out of the country) and ivnestment vehicles bit still no where to invest in real production and no direction to improve productivity.

It’s all smaller government is good for business, same old same old that left us with a specualktor economy that fued the private debt explositon. There is nothing here to change any of that. Which leaves us fighting over the pie, rather than increasing it.

We will remain a low wage economy, and we will continue to see (25% currently) of graduates going offshore. I expect these facts top continue in their trend and worsen (the wage gap with Oz will continue to worsen during this governments term in office and it will be 33% of graduates offshore within a decade).