Would anyone blame National for not delivering on potential tax cuts after the Kaikoura quakes? Why even raise the possibility?
Some economists have cast doubt on whether the government would be able to offer tax cuts following the disaster.
Talking to media in Lima, Peru, where he is attending the APEC summit, Mr Key said the government had been mulling a “tax or family package” for 2017 onwards, but whether it would go ahead in the short-term depended on how much the bill for the Kaikoura earthquake was.
“When we get a better assessment of how much it’s going to cost, it will be one factor that has some impact on our capacity to move in the short-term, but probably not in the medium term,” he said.
“It’s the only factor … there are a number of moving parts.”
Key is acting like that knight in Monty Python, it’s only a flesh wound!
Explaining the family package idea, Mr Key said tax cuts were only part of the solution for lifting household incomes.
“Tax is one vehicle for [raising incomes] but it’s not always the most effective vehicle for doing that, in particular for low-income families,” he said.
He declined to give any further specifics about possible plans.
There were also a number of other upcoming costs, such as $1 billion to increase prison capacity, to be considered, Mr Key said, after it posted a $1.8b surplus for the last financial year which sparked talk of tax cuts in election year.
“I don’t think the earthquakes as they currently stand would, over the medium-term, stop us from doing other things.”
He said working out the cost of quakes could potentially set back Treasury’s half-year report.
“It might take a tiny little bit longer to make sure they can get the best estimates they can,” he said, adding the report could be bumped back a week from its December 8 date.
So, you don’t have medical insurance and you’re just told you need a number of elective operations which will come to $100,000. So you turn to your partner and go “meh, we’ll still get a new car and go on holiday”.
Bill English won’t be appreciating this kind of largesse. Not after years and years of scrimping and saving. If we have that sort of cash, you’ll find the police, teachers, doctors, nurses, firefighters and all other government sector workers will want a fair chunk of all this.
As for National voters approving of tax cuts to benefit the less well off, it just goes to show that Winston Peters is being gifted a large role in the next government. With or without National.
– NZN via Yahoo! News