The Nats had the Tax Working Group and Australia had the Henry Tax Review. Dr Henry is the Australian Federal Treasury boss.
For some reason, Prime Minister Key and Finance Minister English have always operated under the assumption that the Henry review would recomend to the Rudd government that taxes should be cut - esp the company rate. Key and English’s own tax working group also seemed to be operating under such an assumption.
Dr Henry presented his report to Federal Treasurer Swan in December, and while the report has not been made public, Dr Henry said in a recent speech that the consequences of the aging population means that Australian’s will need to pay MORE taxes. Mr Rudd has said that he is putting the Henry tax review on hold as he concentrates on major health reforms.
Mr Key and Mr English seem to be stuck in a late 20th century economic timewarp when the rest of the world is concentrating on how to stimulate the economy by providing relief for those who actually need it – those 70% of salary and wage earners on $40k or less – those 800,000 New Zealand families with a combined household income of $60k or less. How about doing something for these Kiwis Mr Key.! Take a leaf from Mr Rudd’s book and put these tax increases for the many so as to cut taxes for the few on hold – then seek a mandate from the people in 2011 for such radical and unfair changes. Go on.
