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Saturday, August 20, 2005

Fiscal Responsibility

Ever since Cullen said the government could not afford tax cuts, and it would be fiscally imprudent to do so, Labour have felt under pressure to counter National's answer to the growing surplus. Give some back.

When Cullen found 500 million in advance tax payments from the banks, he spent it within 48 hours, allocating it to the roads. This was at the time we discovered Labour had miscalculated Kyoto by one billion dollars. No mention where that money would come from.

When National offered tax deductible interest off students loans, Labour suddenly found another $300 million to provide interest free loans. The problem there was the policy was put together so quickly, chances are it too was mis-costed by at least 400 million dollars, probably more.

The latest election promise is a big boost to the Working for Families Scheme. After Labour upped the tax rate to 39 cents in the dollar for the "rich" people earning over $60,000 per year, they now realise tax "relief" is in order if you have a large family and earn up to $140,000 per year.

Ironically, now some-one on $90,000, with a large family might get a tax credit, when some-one on $35,000, not yet having started a family will not. Labour have lost the plot.

First no money, then lots of money. Extra relief means cuts in services, and now it doesn't. Cullen and Clark are not demonstrating fiscal responsibility, let alone social responsibility.

Posted by ZenTiger | 8/20/2005 03:29:00 PM

5 Comments:

Blogger coge said...

This new policy shows how desperate Labour have become with the election just four weeks away.

They have also played their cards too early, which will bite them on the posterior, as the campaign progresses. National have a better handle on timing in seems.

8/20/2005 07:01:00 PM  
Blogger ZenTiger said...

very cogent coge. I suspect when Labour bleat "but look how long we had to wait to hear National's policy" people will just say "so?"

8/20/2005 07:42:00 PM  
Anonymous Anonymous said...

Making student debt interest free means $1.7b gets written off Crown financial assets. That is next years payment into the Cullen fund. Labour wrote off next years Cullen fund payment at the stroke of a pen and without any advice from Treasury. They make me puke.

8/21/2005 12:53:00 AM  
Blogger peterquixote said...

i have the awful feeling that Helen will form the next Government and with Green,

8/21/2005 11:28:00 AM  
Blogger Lucyna said...

You could be right, Peter.

If that does happen, the gloves will be off. If NZ has to live under a 3rd term Labour Government, I think it will become clear to many more people just what their intentions are. Sometimes a thing cannot be understood in any other way than experiencing it.

I hope that doesn't happen though.

8/21/2005 11:54:00 AM  

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