The test of urgent legislation is not just what is in the legislation, but what is not. On both counts this National government should be condemned.
It’s the day after the Budget and Parliament is sitting in urgency to debate new tax legislation. The Taxation (Budget Measures) Bill is apparently so important that National have:
- Deferred the main Budget Debate;
- Removed normal select committee review;
- Imposed a retrospective effect.
So what is this tax bill about?
Is it the secret “base broadening measures”; National’s supposed answer to Labour’s future focussed capital gains tax?
Is it the closing of the major loophole by which half of the wealthiest 100 New Zealanders avoid being on the top tax rate?
Is it reinstatement of the Labour Government’s research and development tax credits, the key tool which was stoking our businesses’ engines of innovation?
Er, no, no and no.
The centrepiece of this Bill is picking the pockets of paperboys and papergirls. Urgently taxing toddlers, if you will.
It’s laughable that National’s top economic priority is retrospectively stealing the pocket money of 68,000 kids.
But it’s incredibly sad that this is what government in our beautiful country has come to.
National has wrecked New Zealand’s economy. Just yesterday they unveiled a horrific 17% plunge in exports. But instead of getting a real plan to deliver a brighter future they’re plotting to tax toddlers.
The zero Budget of 2012 is yet another wasted opportunity for a country desperate for change. It’s an insult to ordinary Kiwis who are working harder and longer for less and less. It’s a slap in the face to law abiding families and small business owners who pay their taxes, and who deserve to get ahead instead of being pickpocketed.
New Zealand is losing 1,000 Kiwis every single week. That’s 50,000+ a year.
Unemployment is up by 50,000+ since National took office. The number on benefits is up over 50,000 too.
A zero Budget means zero hope for them, and all New Zealanders.
It also means zero pocket money for paperboys and papergirls.
David, what do you mean when you say the government’s priority is “urgently stealing the pocket money of 68,000 kids”? Are you saying taxation is theft? Or are you only saying that tax is theft when your opponents do it?
I really don’t think there are 68,000 paperboys in the country though. There are probably a fair number of wealthy families who have arranged their tax to split it up to paying kids who do no work though to minimise their tax.
I think you should stop stealing Trevor’s lines, David. They aren’t very good, don’t make him look good, and the best thing about him delivering them is nobody takes him seriously anymore. But if you want to be taken seriously you should stick to economic development issues and stop taking David Parker’s sunshine.
whodunnit, the point is the priorities are wrong while the country is in a desperate mess.
Where was the real pro-growth tax reform, like R&D tax credits and a CGT?
Where was the growth agenda? Where was the vision?
No wonder 50,000 Kiwis left the country last year. More will leave now.
Wait, retrospective how?
David, you fought the tough battle on CGT at the last election back when you were finance spokesman. What happened? Three quarters of the country said no. The government has no mandate for CGT.
R&D tax credits don’t promote rapid economic growth right now. Your government had them in place for years and they were a very expensive way of encouraging companies to change their accounting policies for free money. They didn’t lead to increased investment in R&D.
You seem to have forgotten we’ve had a global recession, or that the earthquakes ever happened. You also seem to have forgotten that your government left the economy in recession, with a decade of deficits ahead of government. You’ve also forgotten that your party has opposed every growth initiative the government has brought in. So let’s not pretend that growth is actually your agenda, please. Let’s have a bit more honesty.
at this rate you guys wont even have to run a campaign at the next election….just how up to the debates and you’ll win….
@ Whodunnit, are you blind to Nationals borrowing more than any Govt before? Are you blind to Nationals privatisation of anything it can get away with? Are you blind to the fact that John Key said we needed to tighten our belts and budget through this recession and after the worst of it, that the last govt went through by the way, he is still wingeing about the previous government when he has put us severely in more debt than Labour and made the country look like an environmental disaster… John Key is corrupt not answering how much he has borrowed from a bank he has shares in on our behalf. If you think Labour would do worse, vote green because there’s only one future getting brighter with Key and that’s not the average NZer.
whodunnit, let’s not rewrite history here. Let’s have a little honesty here. Let’s not use the global economic crisis to defend the dull middle management social engineering mentality of this Government then forget about when it comes to the previous Government’s last 8 months record. Let’s not forget about the running surpluses of the early 00′s or the $2billion a year we now borrow for tax cuts that have lead to more unemployment and less productivity. Let’s not forget the billions of dollars going in to the earthquake rebuild form private insurance companies and the well stocked EQC. Let’s not say that three quarters of the country said no, when it was 1% over half. I agree with you, let’s have a little honesty.
@Whodunnit, Labour seem to think that those who don’t vote for them are somehow deluded. It never once occurs to them that from time to time most don’t agree with them. This governments mandate is an election win fought on the policies being implemented now particularly partial Asset Sales. Labours platforms in this regard were rejected soundly. If you can’t sell your idea, you lose every time.
David,
you said “National has wrecked New Zealand’s economy. Just yesterday they unveiled a horrific 17% plunge in exports. ”
Shearer bleated the same lines yesterday.
Do you guys even bother to understand why there was a $800m drop in those figures released?
http://www.stats.govt.nz/browse_for_stats/industry_sectors/imports_and_exports/OverseasMerchandiseTrade_MRApr12.aspx
Prices overseas have fallen for our main commodities. When milk prices are high other countries e.g. USA, punmp more feed into their feedlots and produce more milk, this increases supply, and prices soften as a result.
It is more driven by supply and demand from overseas, and it is not the fault of the Govt, the same would be the case if you were the Finance Minister.
David, tell us, if you were the Minister, how would you ensure that in-market prices overseas did not soften?
“Labour seem to think that those who don’t vote for them are somehow deluded.”
That’s a bit unfair, to single out Labour.
A majority of people in NZ don’t vote nat, and if you asked around, deluded is a best case scenario.
I’d expect dumb as a box of rocks, or greedy and selfish, or brain dead, or retarded, or corrupt, or morally bankrupt, divisive, elitist etc… to figure quite strongly.
Respectfully to the commenters prior to me, my 12 year old works hard for her $40 a fortnight delivering papers. Now the government want to tax her! I’m not happy about it at all. We are a low income family and my 12 year old works hard so that she can go to the movies with her friends, so she can save up for the high end items she wants… I care!
Oh and David, I really don’t think it’s true to say that the country’s economy is in a “desperate mess”. It might make for good poetry but it’s not the truth, is it?
Compared to other countries in the OECD, NZ’s doing pretty good. The Government isn’t taking the harsh austerity measures that are occurring throughout Europe. Instead of cutting health, education, and science and innovation, the Government’s putting a lot more money into it. And our unemployment rate isn’t too bad compared to the rest of the developed world–and it’s improving. Lots of new jobs are being created and the economy is growing faster than almost all our trading partners.
Why are you trying to talk the economy down so much, David, when you know you left it in tatters last time you were in Government, and every pro-growth initiative this government has introduced, you have universally rejected?
“David,
you said “National has wrecked New Zealand’s economy. Just yesterday they unveiled a horrific 17% plunge in exports.
Shearer bleated the same lines yesterday.
Do you guys even bother to understand why there was a $800m drop in those figures released?
Prices overseas have fallen for our main commodities. When milk prices are high other countries e.g. USA, punmp more feed into their feedlots and produce more milk, this increases supply, and prices soften as a result.
It is more driven by supply and demand from overseas, and it is not the fault of the Govt, the same would be the case if you were the Finance Minister.”
Translation: Dear David, I believe everything I’m told by that nice mr key. You suck!
Quality argument, from a nugget of nothingness, if you will.
“Oh and David, I really don’t think it’s true to say that the country’s economy is in a “desperate mess”. It might make for good poetry but it’s not the truth, is it?”
Translation: Mr key says I’m going to be rich in 2015.
“Why are you trying to talk the economy down so much, David, when you know you left it in tatters last time you were in Government, and every pro-growth initiative this government has introduced, you have universally rejected?”
Translation: Now I’m just making it up because I’m a Labour party hater.
Well the new ‘kiwi’ flag should have the image of a banana in a fern shape
Taxation isn’t theft when you have representation. How old do you have to be to vote? How old are the people that this government are going to be taxing?
If that’s the case then we need a law that catches those people. We don’t need a law that taxes those with no voice.
R&D is the only viable method to growth as it promotes sustainability. As productivity increases more people need to go into R&D – instead we give the freed up resources to the selfish few and get nothing for it.
This government hasn’t brought in any growth initiatives. What they brought in is policy that gives more of our wealth to the already rich which will, and is, prolong and worsen the recession that we’re in.
Well, you just proved that people who vote NACT are deluded. Go do educational reading.
Mr Bastard, you have the patience of a saint.
“Well the new ‘kiwi’ flag should have the image of a banana in a fern shape”
But it’ll have to be a really small flag at the moment, what with the price of materials right now, but in 2015, we’ll all have flags as big as king size beds, made of $100 notes.
All the hollow men can do is holler:
“Decade of deficits!
Hurray, we’re not like Greece!
Well.. Labour are just meanies and anti-growth because they don’t vote for our legislation!
DC wants to be leader of the Labour Party!
Europe – Austerity – uhh.. Europe!”
Well whodunnit, since you believe DC is “stealing Mallard’s lines”, I’m going to suggest that YOU stop stealing the lines of Crosby/Textor, John Key, Bill English and Gerry Brownlee from the house yesterday.
This budget is a sack of ****, clearly devised entirely by Moonbeam, designed to ensure that the fat cats keep all their cream while lower and middle income earners and young people get their crumbs confiscated.
TG original – do the right thing and quote me next time. Oh wait, its Friday, time to get in the Beamer and head off to the bach.
Austerity in Greece means that there is “no” money to pay pensions, and the public service employees, and many other things
We do not have Austerity – wrong word.
David – can you please explain how a capital gains tax would shift investment flows given we have s CB 3, ITA 2007? How would a CGT assist home affordability given it’s worse in many parts of Australia than in NZ?
@Arthur – LOL
@Al1ens
@ Fortran, tell that to the elderly pensioners in rest homes who have just been ‘asset striped’ by Key and Bennett? And she was unable to haul her enormous bulk up onto its feet and say one word of explanation. Evil bunch of Tory crooks.
Ah nothing like the reasoned and polite debate of the blogosphere….
Suffice to say it is unlikely the various writers of this thread are going to agree on the merits of this Zero Budget.
It’s always interesting to see the lack of understanding on here…
But, stats wise: fiscal consolidation in NZ 2012/2013 = 5.2% of GDP, the largest shift out of ALL OECD countries…
#1 reason why I should have been hired in an advisory role in the LotO office…
@sbw – “David – can you please explain how a capital gains tax would shift investment flows”
Simply put, taxation decreases spending power on the item taxed. CGT isn’t the answer to all the issues surrounding the property bubble, but, it’s a start…
And considering income is taxed at 25.5% at the first dollar earned, why does one argue?
@Fortran – “Austerity in Greece means that there is “no” money to pay pensions, and the public service employees, and many other things. We do not have Austerity – wrong word.”
Status quo take, and wrong. Comparing two completely different monetary systems makes zero sense. No Euro country should be mentioned in any form of serious analysis of NZ. Ignore it…
Secondly, see the above (two) comment.
@whodunnit – “Compared to other countries in the OECD, NZ’s doing pretty good. The Government isn’t taking the harsh austerity measures that are occurring throughout Europe.”
Attempting analysis by comparing two irrelevant systems is rather ignorant. You clearly don’t understand how either monetary system works and cannot compute even simple macro-economic facts…
Secondly, (again) NZ has the HIGHEST fiscal consolidation out of ALL OECD countries…
I should add, that’s the IMF, hardly leftist…
My 17 year old son has a disability, goes to school does exceptionally well and works two jobs earning minimum wage. He is desperately saving for uni, wanting to study law. Now he’s going to be taxed and the student allowance etc are being changed. Just how are our children meant to get ahead?
Perhaps if children are being taxed and having their futures taken away they should be given the vote!
“Whodunnit” is too clever by half. Doesn’t know what he’s talking about (where we stand in international tables) and seems to grasp nothing at all about the impacts this pathetic budget will have. But hey, enjoy that parallel universe, Mr anonymous whodunnit, fantasy is a great retreat when reality is too hard.
Among OECD nation New Zealand is pretty good…
The top of the compost heap is usually in “better condition” than the rest, but it is decomposing into dirt.
Greece was better now foreign banks are squeezng it for every Euro-penny and soon every drachma.