Red Alert

Posts Tagged ‘tax increase’

PM – “Don’t be jealous – rich are crucial to economy”

Posted by Stuart Nash on May 18th, 2010

Who is as insulted as I am over PM Key’s statement, reported in today’s Dom Post, around why the highest earners will get the tax cuts in this week’s budget, at the expense of the 92% who earn under $70k/ann (http://tinyurl.com/23natqb)? ”We can be envious about these things, but without those people in our economy all the rest of us will either have less people paying tax or fundamentally less services they provide”

Well, my daughter is taught by a teacher earning under $70k, most of the police who put their lives on the line for us earn under $70k, nurses who fix us up when we fall over earn under $70k, and the vast majority of people who actually make this country tick – the backbone of the nation – earn under $70k.  Are these people any less deserving?  Do they not ensure that the wheels of industry are well oiled, the streets are safe and our citizens are provided with the services required of a first world country?  Of course they do.!

How bloody insulting.!  As I blogged earlier this year, there are a myriad of reasons people live and work in New Zealand – and tax is way down this list.  These changes will, if anything, drive middle NZ across to Australia and further afield.  Mr Key – just be honest with Kiwis and stop feeding us your propaganda: these tax cuts are not about creating equality of opportunity, driving higher productivity, developing a fairer tax system or building more equitable society – because they will not achieve any of these goals.  If you believe they will, then I suggest you start studying your economic and financial text books and reading your case studies –  those published this century – not last.!

Don’t get me wrong, I am not saying that our high achievers are not deserving – they are – but so is everyone else.  The increase in tax through the GST hike to 15% is broad and all-encompassing – so should the tax cuts be.!