Not even a lefty tax cut from Cullen
Labour's predictable budget.
The thing I can't understand is Dr. Cullen's ideological approach to tax cuts. There is no denial that tax cuts can benefit all when you take a simple look at the low end tax free zone as deployed in tax rates in Australia. If NZ declared the first $10K of earnings as tax free there would be a saving to each tax payer $1,950/yr (or $37.50 ) a week. Anyone earning below $10K is now tax free and anyone earning more than $10K gets the same amount back. Every body gets the same, isn't that nice.
But more importantly there is the incentive to work aspects. Having a tax free income to marginally higher than the single persons unemployment benefit will encourage work. And I guess it's that possibility that will show the folly of the ideology.
The thing I can't understand is Dr. Cullen's ideological approach to tax cuts. There is no denial that tax cuts can benefit all when you take a simple look at the low end tax free zone as deployed in tax rates in Australia. If NZ declared the first $10K of earnings as tax free there would be a saving to each tax payer $1,950/yr (or $37.50 ) a week. Anyone earning below $10K is now tax free and anyone earning more than $10K gets the same amount back. Every body gets the same, isn't that nice.
But more importantly there is the incentive to work aspects. Having a tax free income to marginally higher than the single persons unemployment benefit will encourage work. And I guess it's that possibility that will show the folly of the ideology.
posted by Gardener at 10:05 PM
1 Comments:
This is the point that the left leaning public need to have bashed into their skulls - when we talk about tax cuts we don't NECESSARILY mean the top rate. And cutting the bottom rates, percentage wise, help the poor FAR MORE than the wealthy.
It is also why an income splitting scheme would be far easier, more effective and encourage better outcome s than WFF.
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