“Under this Government, corporate welfare continues to rise. So far, Joyce’s programme of corporate welfare has included payments for sheep given to a Saudi businessman, rockets launched off the Coromandel, and a boat-building company owned by the world’s seventh-richest man. “If Mr Joyce really thinks that investing in these businesses provides a good economic return, he should invest in them with his own money and reap the benefits, without putting the overburdened taxpayer at risk.
“Corporate welfare now costs New Zealand households over $750 a year. Meanwhile, the Government says that the conditions are not right to cut taxes. “If the Government cut all corporate welfare, it could cut the corporate tax rate from 28% to 22.5%, or could abolish the top income tax rate of 33%. Giving households and businesses their tax back will let them decide for themselves what best suits their needs.”
“The Prime Minister is trying to have it both ways. He campaigns from the right by noncommittally hinting at future tax cuts, but governs from the left by refusing to end tax bracket creep, let alone cut tax today. “Even a $3 billion tax cut in 2018 would barely cancel out the $2.1 billion cost of bracket creep since the last round of tax reforms. It would be more of a ‘tax reset’ than a tax cut.
“It’s ridiculous that politicians can jump up and down every few years and claim to be cutting tax, when they’re really just correcting for inflation pushing earnings into higher tax brackets. “It strains credibility that the Government is prepared to allow eight years of bracket creep before cutting tax. A more credible approach would be to cut tax now, with a promise to adjust tax brackets with inflation rates. Otherwise, bracket creep will continue to raise tax by stealth, eroding the benefit of the tax cut.”
Excellent stuff from David Seymour, apparently the only man in NZ prepared to confront Key and Joyce on what left wing losers they really are. Let’s hope there is a lot more coming.