Wednesday, June 25, 2014

This or that, I'm not sure

The Conservative Party has published its tax "policies".

You'd be excused for thinking CCCP is a pneumonic for the Colin Craig Conservative Party.  It could mean Colin Can't Count Party.

The party's policy is to have a tax free threshold up to $20,000 and a flat tax beyond that.  He doesn't say what the flat tax rate is.  Jamie Whyte called him out on that and showed it would mean a tax increase for many workers.  

But Colin's main problem is he doesn't know his own policy, let alone the the implications of it.  On the party's website, he gives this answer to a question about whether the party would lower taxes:
Yes we would. We believe that the taxation system should be simpler, and less burdensome.

Our first step would be to have a tax free income threshold of $25,000 which is a tax cut for all workers in NZ.
I'd trust Jamie Whyte's analysis over his, so it's not a tax cut at all.  It's an increase.

And the "error" relating to the tax free threshold wasn't a mistake.  In an answer to another question on the same page he said this:
Yes there are hardworking people who are struggling to get by on what they earn.
Therefore we would increase the tax free threshold to $25,000 meaning more money in the hand for low wage earners.
So is it $20,000 or $25,000?  And would the policy mean tax cuts, or tax increases.  He needs to explain if he wants to be taken seriously.

Labour is not better.  But we expect that from them.  Today they announced alignment between the top personal tax rate and the trust rate.  But the company tax rate is 3c lower, and so the opportunity for people to form companies and pay less tax is clear and obvious.

Dumb from Labour.  Sloppy from the Cons.


Ciaron said...

Ok, lets compare with what we know from Act:
Short to medium term goals should include reducing the level of government expenditure below 28 per cent of GDP and lowering the top tax rate to 24 cents. ACT’s Regulatory Responsibility Bill should be passed, and assets exposed to actual or possible commercial competition should be divested.

Not in the least substantial policy description, and what does all that look like... in reality?

Ciaron said...

Oh, and people give Colin Craig grief about his imagery, how about the indescribable expression on Seymour's face!

Anonymous said...

Craig really needs to complete the picture on his taxation policy to avoid being misinterpreted on such important issues.

I suspect it will be announced during the campaign. Its not a long way from previous Act party taxation policy.

Adolf Fiinkensein said...

Hard to see how you can claim it would mean a tax increase when you don't know what the rate of flat tax might be.

So who is calling out who?