Tax Increases

Treasury recommends a reduction in some taxes, and the Government rules it out immediately.

Social Development Ministry recommends an increase in some taxes, and the Minister says “I’m open-minded on these issues”.

Tax is a one way highway for this Government.

UPDATE: The Dom Post Editorial flays Cullen for shooting messengers and labelling the Treasury advice as a “three-yearly ideological burp”, pointing out he hailed Treasury’s 2002 briefing papers as “high-quality and pragmatic analysis”. It is disgraceful he shits on his own Department if they dare to give advice he doesn’t agree with.

The Press also wades in calling Cullen’s response deja vu Muldoon.

Also Insolent Prick wonders what all the pro-tax spin doctors in MSD do. To be fair to MSD they have shown some common sense by recommending part-time work-testing of DPB recipients once their children are at school. That has of course been ruled out immediately. Only tax increase are worth considering further.

And the final insult comes from Dr Cullen. You remember those miserly derisory tax cuts he promised for 2008. The chewing gum ones. Well he has threatened to cancel them, if they don’t get to implement their new carbon tax. United Future is furious, as they have been humiliated having won a review as part of their agreement.

So Dr Cullen is saying a $8 billion surplus is not enough to even afford a 67c a week tax cut in three years, unless they can whack us with the carbon tax.