Labour’s tax cut for the rich

Newshub reports:

The Government is keeping half-price public transport and the 25c a litre petrol tax cut. …

“This is an extremely dumb economic policy,” said Infometrics’ Brad Olsen. 

Infometrics has crunched the numbers on the average fuel use of people in different income bands. As higher-income households use more fuel, they save about $64 a month. Households who earn the least and use the least petrol save just $21.

“We’ve heard time and time again about tax cuts for the rich. This policy is exactly that,” Olsen said.

Tax cuts are good if you cut spending also. But what Labour is doing is keeping the petrol tax down in election year, and borrowing money to make up the difference – which means it get added to our collective debt.