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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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

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