Greens, NZ First back budget tax plan

Labour has voted against the budget tax plan, but their supposed partner Greens along with NZ First have backed it.

Stuff: Labour and Greens split over Budget tax cuts despite joint ‘fiscal responsibility’ deal

The Budget tax cut plan has split the Opposition, with Labour voting against the changes and the Greens and NZ First voting in favour.

From April 2018, the moves, which lift the bottom two tax thresholds, will give $10.70 a week to those earning more than $22,000, and $20.38 to those on more than $52,000 a year.

But the simultaneous axing of a $10 a week credit for low earners with no dependents means some will only be better off by only $1 a week – leading Labour leader Andrew Little to dub it the “dollar Bill Budget”.

Speaking after a Grant Thornton post-Budget breakfast in Wellington, he said the Greens, who were voting in favour of the tax threshold changes, were an independent party and could do what they wanted.

Of course they can – but if they do the opposite to Labour on a budget vote their joint approach to campaigning and ‘fiscal responsibility’ it looks a bit awry.

He said not too much should be read into the fact the two parties were voting in opposite ways on the tax package.

“They’ve made their political judgment on the basis of this Budget at this time. But both our parties have pretty clear agreement about the level of discipline required in fiscal management if we have the privilege of forming a government.”

Labour took a different view on whether the package was well targeted and well prioritised.

“If we have the privilege of forming government there is a level of jointness in our platforms – and we make those decisions more jointly and in a more connected way than we do when we are two parties in opposition, albeit working closely together,” he said.

“You can vote different ways and that (BRRs) document retains its integrity.”

Yeah, right.

Burt the Greens are for and against the changes.

Marama Davidson: Small change that is sorely needed

The big headline of the Government’s Budget yesterday was its Family Incomes Package – a range of measures including changes to income tax thresholds and the Family Tax Credit.

Overall the Budget is a huge disappointment and a missed opportunity to make real progress on pressing social and environmental issues. We want more support for those who need it most, and we want that sooner than National.  To make that a reality, we need to change the Government.

But right now, we are debating National’s family package in Parliament. The Green Party is supporting these changes, not because they’re perfect – far from it – but because we want families to get more support and we strongly believe it is not our role to deny those families that.

With these changes, the Government has turned on the tap that has been long denied to communities for some desperately needed relief. But it’s only a tiny drop. For our lowest income families, these changes are a trickle, and in the words of the Child Poverty Action Group, what is actually needed is a tide.

Five dollars extra is pittance for people on lower incomes, but things are so tough that sadly $5 makes a meaningful difference for too many people’s lives. We should not be proud of that. Some families have become so used to scraping a meal together on so little, that five extra dollars is actually a big deal.

That’s why we are not going to stand in the way of families getting more money where it is sorely needed.

But we are introducing two changes to this Bill to try to make it fairer. The first brings the start date forward, so that the increase to the Family Tax Credit would start on the 1st of July, rather than waiting until 1st April 2018. Making children who are cold, hungry and sick wait another year for relief is negligent.

The second change increases the income threshold which the tax credit is abated from $35,000 to $50,000 and lowers the abatement rate from 25cents to 5 cents.

Lowering the abatement rate will means family that are earning under $50,000 will get to keep much more of this money.

There’s no doubt that it’s a cynical election year budget designed to keep National in Government rather than solve the huge challenges this country faces.

We urgently need to invest more money in housing, education, health and mental health and the environment. In order to make that a reality we need to change the Government – nothing we say will convince National to make those bold choices.

But right now we live among communities where we hear, on a daily basis, the stories of heartbreak that are harming families and children.

While we won’t stand in the way of the tax cuts for the lowest incomes, the Greens will keep working for the real changes that are needed to ensure all everyone has what they need to live; good lives, warm secure healthy homes, enough healthy kai and enough to pay the bills.

That is the leadership that our people want and deserve.

1 Comment

  1. Zedd

     /  May 27, 2017

    stop press; Greens & NZF are independent parties.. not factions of Labour !
    * at least there are other options on the ‘centre-left’ 😀