Dom Post on Tax Cuts

Some useful quotes from today’s editorial:

What it is proof of is that his Government is over-taxing New Zealanders, a bad practice that insulates ministers and officials from spending mistakes – because they can be written off without consequence – and makes individuals more dependent upon the state.

Treasury’s view that the state is on a “structurally higher” revenue track than previously believed makes some sort of announcement about tax cuts almost inevitable in next year’s Budget, which conveniently falls just a few months before the election. But, if past experience is anything to go by, the amounts involved will be small and the wait to receive them long. This is not a government that relishes relinquishing its grip on individuals’ wallets. Previously it has argued that returning surplus revenue to those who earned it would fuel inflation, a self-serving argument that has encouraged ministers and officials to bid opportunistically for the surplus cash.

Dr Cullen has previously argued that he does not need a tax cut. Given his $255,000 salary as deputy prime minister and the generous superannuation fund waiting for him in retirement it is difficult to disagree with him.

But there is a world of difference between earning $4900 a week and $1150 – the amount earned by someone on a $60,000 salary.

I would also observe that Dr Cullen doesn’t need taxpayer funded superannuation, yet he is happy enough to take that, yet not happy to give tax cuts, on the basis he personally doesn’t need them.  Somewhat inconsistent.