In the George Orwell novel 1984, I remember a passage about the chocolate ration.
Big Brother cut the chocolate ration, but the state run media said the chocolate ration had been increased, and the 'proles' believed them and were grateful to 'BB.'
Has the New Zealand media fallen for something similar here?
Media coverage mentions a tax rate of 21c but checking the IRD website, I see reference to a 19.5 c tax rate.
So to fund taxcuts has Michael Cullen grabbed a bit of cash at the bottom by a devious and hidden increase in the next-to-bottom rate?
I note the media has faithfully reported how Cullen's taxcuts will mean people will be paying a little less, while ignoring the actual marginal rate.
Perhaps this is something in need of better exploration by tax experts.
It all seems reminscent of what Gordon Brown did in the UK a few months back, when he axed a bottom rate of tax, hitting the lowest paid. So has Cullen done something like it here? Was Budget 2008 another another policy written in London?
But what will the implications of this be? Likewise, a further slump in the polls, just like Gordon Brown has suffered?
Hat tip: Dave Gee