No tax cuts says Scrooge McEnglish

Bill English has said there are no tax cuts in the budget.

I await comment from Labour about how disgusting this is…when they are promising to spend even more than National.

The Government says tax cuts are now off the table in this year’s and next year’s Budget.

Finance Minister Bill English confirmed this afternoon that the Government would instead prioritise paying down national debt.

In a pre-Budget speech to the Wellington Chamber of Commerce, Mr English said lowering income taxes remained a Government priority, in particular for low and middle income earners.

“However, as we’ve always said, tax reductions remain dependent on fiscal and economic conditions.

“With continuing tight fiscal conditions, we don’t currently have an explicit provision for tax reduction in the fiscal forecasts.

“At this point, we’ve prioritised additional debt repayment over setting aside money in Budget 2017 for tax cuts.”

Well thats a bugger. I think they could have tried harder to find headroom for tax cuts. Labour of course have been making spending promises like drunken sailors. SO there would never be tax cuts under them.

Treasury had forecast significant reductions in nominal GDP, influenced by inflation staying lower for longer than expected. Higher-than-expected population growth had also put more pressure on spending.

As a result, Mr English said, new spending for the 2016 and 2017 Budgets had been “rearranged”. Spending which had previously been earmarked for the 2017 Budget would now be brought forward.

Another portion of the spending earmarked for next year’s Budget would be used to reduce debt, to help meet a target of reducing debt to 20 per cent of GDP by 2020.

Before the “rearrangement”, the Government had set aside $1 billion in new spending for Budget 2016 and $2.5 billion for Budget 2017.

At least debt reduction is now back on the cards. That too is funny though because Labour constantly refers to the size of the debt without even pausing to remember that they opposed every cut int eh budget to get through the global financial crisis and they’ve promised way more spending like that for Keytruda. Their crocodile tears of debt is hilarious. If Labour were in charge the debt would be even greater.

 

– NZ Herald

 


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  • one for the road

    If Labour were in charge we would be so in debt our rating would be junk

    • Mike Webber

      When labour were in Government, central government dept was $10.4 billion, it is now $116 billion. Studies all around the world, including N Z show that for the best standard of living, total state taxes should not exceed 10% of GDP. N Z had the third highest income in the world, from 1900 to 1950. Total tax then was 17 % which was too high. Total tax now is over 45 % and our our incomes have dropped to 40th in the world. This National socialist Government has increased tax, spending and dept considerably.

      • one for the road

        We have a National socialist Government?

        • Totara

          Not quite as socialist as they were under Muldoon.

  • Steve

    As someone that now has grandkids I am pleased that we have a government that wants to manage the country in the same way as we all do in managing our household budget.
    Certainly do not want to leave this wonderful country in a worse state then when I arrived.

  • RightofSingapore

    But tax cuts, when administered properly can stimulate the economy, provide more growth, jobs and revenue. If spending is an issue, how much are they spending towards Disgraced Auckland Mayor Len Brown’s trainset? Propping up Kiwirail? Subsidising electric cars? I could go on…

  • GoingRight

    I totally approve of reducing debt over tax cuts, maybe in a year or two we may be able to do both. Very responsible management in my view. Well done Mr English, a steady hand on the tiller.

    • bevanjs

      Steady hand?! Under who’s management did the debt blow up under? Who has maintained Clarke’s regime?

      • hsvmaloo

        Dead rat policies, Global financial crises, Christchurch earthquakes. I know who I’d rather have at the helm.

  • shykiwibloke

    The ants don’t have to promise any cuts. None of the others are, so why should they? We need a strong small-government party to keep the current lot a little sharper and a little more on track to less red tape esp the RMA. Not something you will get from Dunne or the Maori party unfort.

  • D.Dave

    You could smack me over with a feather. I think I heard the Labour Party saying “they agreed with Mr English’s decision to scrap tax cuts”. Personally, I think it is a sensible direction to travel. Reduction of debt is prudent. By next year Labour will be clamouring for an increase in wages: wouldn’t that be like getting a tax cut?

  • Totara

    My advice to anybody heading into these turbulent economic times is: to cut back on their unnecessary expenses; and to reduce debt. Government should be no different from households in this regard.

    So I am pleased to see that debt reduction is on Bill’s to-do list. There aren’t many countries in the world that have any sort of a surplus with which they can use to reduce debt with.

    But he ought to have had a ‘sinking lid’ on all government departments’ funding for the last 7 years so that the unnecessary expenses could be trimmed back, and hard-working Kiwis would get to enjoy more of the fruits of their labour and then plough their savings into productive enterprises.

  • andrewo

    You have all missed the REAL story here: He’s saving it for 2017 – election year. ;-)

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