Labour promises years and years of tax cuts

If National saying they will not reverse a policy already implemented is billed as a u-turn,what do you call the extraordinary statement from Labour that after oppossing personal tax cuts for the last eight years, they will now deliver tax cuts not just next year – but every year thereafter until the end of time.

Oh okay, not until the end of time, but past the next two elections.

Personally, I don’t believe them.  Cullen announced tax cuts in 2005 and cancelled them in 2007.  With the uncertain economic future, it isn’t hard to imagine a scenario where after the election they will find an excuse to cancel them again – on the grounds the economy is not resilient enough.

But it is good Labour has done a u-turn and has stolen National’s tax cut policy of progressive tax cuts every year. This shifts the debate to how to deliver ongoing reductions in taxation, and leaves behind the hysteria of the past about how tax cuts will results in slashes to core public services.

Isn’t it amazing how one poll comes out saying tax cuts are the biggest election issue, and Labour quickly comes up with a new tax cut policy of tax cuts every year.  If only they had adopted this policy when inflation was lower and the surpluses higher a few years ago.

But as I said, I welcome Labour joining the mainstream view that reductions in personal tax cuts are highly desirable.  Their sister party in Australia has been there for some time.