Saturday, May 27, 2017

LABOUR'S LOST THE PLOT

National's package of tax cuts and increased assistance to families announced in the Budget was passed into law on Friday with ALL parties bar Labour voting for it.    Winston First and the Greens are to be applauded for their support and endorsement of a budget measure that will impact positively on virtually every New Zealand taxpayer and household.

Labour's argument that the package favors the rich confirms they remain mired in the politics of envy.   It also confirms how numerically challenged they are.    Low income earners earning $20,000 ('their' supposed demographic) will have their tax liability reduced by 17%.   That compares with just 4% for those earning $100,000.    Clearly Labour can't get their collective heads around the fact that the more you earn the more tax you pay.  Clearly too Labour believes 'they' can spend your dollar better than you can.    Collective Muppets all.

My good friend and co-blogger NK would have it that the budget is good politics but bad economics.
Just how a budget that produces a surplus is bad economics is a little difficult to fathom as is his dancing on the head of a pin when arguing that changing the thresholds is not the same as a tax deduction ... bottom line for both ... more take home pay.    But you have to ask if the budget was that bad then why did ACT vote for it?

In 2008 Labour bequeathed the incoming National led government a dog of an economy going bust with every day planeloads of Kiwis seeking to escape the country permanently.   If the GFC was bad enough along came not one but four earthquakes.    It required good governance to see the country back into the black without resorting to slash and burn and no-one, but no-one I've met thinks Labour could have even half matched that.

As for ACT's solution of  'let them eat cake' .... nuff said.


3 comments:

Nick K said...

But you have to ask if the budget was that bad then why did ACT vote for it?

Do you not know why?

The Veteran said...

But Nick ... ACT is a Party of principle. Pure as the driven snow ... snort.

Nick K said...

Indeed it is - the principle of honouring a confidence and supply agreement.