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Labour want to increase taxes not axe them

by Whaleoil on March 8, 2010

As well as being completely geographically challenged along with telling blatant lies about their intentions regarding GST. Labour’s Stuart Nash aka Mangrove has also suggested that we should actually increase taxes.

The Nats had the Tax Working Group and Australia had the Henry Tax Review.  Dr Henry is the Australian Federal Treasury boss.

For some reason, Prime Minister Key and Finance Minister English have always operated under the assumption that the Henry review would recomend to the Rudd government that taxes should be cut - esp the company rate.   Key and English’s own tax working group also seemed to be operating under such an assumption.

Dr Henry presented his report to Federal Treasurer Swan in December, and while the report has not been made public, Dr Henry said in a recent speech that the consequences of the aging population means that Australian’s will need to pay MORE taxes.  Mr Rudd has said that he is putting the Henry tax review on hold as he concentrates on major health reforms.

So, Mangrove thinks that we should be raising tax and Labour is campaigning to axe a tax rise, which they won’t axe, which means they actually support the tax rise……oh my head hurts. Mangrove of course forgets why Australia needs tax increases…to pay for Kevin Rudds largesse.

Mr Key and Mr English seem to be stuck in a late 20th century economic timewarp when the rest of the world is concentrating on how to stimulate the economy by providing relief for those who actually need it – those 70% of salary and wage earners on $40k or less – those 800,000 New Zealand families with a combined household income of $60k or less.  How about doing something for these Kiwis Mr Key.!   Take a leaf from Mr Rudd’s book and put these tax increases for the many so as to cut taxes for the few on hold – then seek a mandate from the people in 2011 for such radical and unfair changes.  Go on.

I’m really confused now. I’m was sure Labour are campaigning to Axe taxes.

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  • Michaels

    Why haven’t the msm asked Goofy what the bus trip is really about?
    He has said he won’t reverse the GST, so is this trip really just a little holiday for them? If not, what is it really all about? I just don’t get it.

    After all, Labour first introduced GST, and then from a sluggish memory, I believe Labour also increased it from 10% to 12.5%, so what’s the problem here? Is it that they didn’t think of it first??
    Baffled.

  • Grizz

    This is hysteria politics. One of the reasons why I will never trust a Labour politicians. It has always been stated that a rise in GST will be compensated by a reduction in income tax. The philosophy here is to tax consumption more and to tax earnings and investment less in order to “grow” the economy.

    This campaign clearly shows Labour do not care about the mechanics that build an economy and are only interested in consumption, which contrasts to their hysterical green ideals.

  • Rob

    Don’t miss the big picture the one they don’t want you to see.
    The purpose of any Government is to collect tax to fund whatever they feel is required. The secret is to increase the Tax Take without appearing to increase the Tax Take. So how do you do this? You make the system as complicated as possible and tinker with it on a permanent basis. This is done in such a way as to give people the impression they are paying less when in fact they are paying more.
    The only real argument is who is best at it. National or Labour.

  • Grizz

    Rob, the best way to increase the tax take is to increase GDP. By increasing GDP you can collect more tax while giving the perception that you are taking less. Unless the government can increase GDP any tax argument comes across as being hollow. That said, I favour tax changes that benefit improving economic investment, jobs growth and hence GDP.

    Unfortunately, with most NZers being economically naive and wanting it all now, it is about the perception of the policies, not the substance that appears to matter more.

  • petal

    MAX THE TAX!!!