Show us the money Winston

I agree with Winston peters that Labour should be more open about their intentions on tax.

I cut Jacinda Ardern a bit of slack, Andrew Little and possibly Grant Robertson arrived at the election campaign with no concrete tax plans and Ardern has had no time to get sufficient expert advice.

But I still think it looks like Labour is playing games with voters, and should be far more up front.

But the need to be open applies to other parties too. If Peters demands transparency, he should also be transparent.

Perhaps he or someone from NZ First could respond to claims by TOP:

Show us the money Mr Peters

1. $5bn  – Student Debt write-off.

No funding sources provided

2. $3bn pa – Diversion of GST collected in regions to funding regional development.

This is money that would otherwise fund central government’s activities so has to be found from somewhere – we wonder where as Peters provides no suggestions.

3. $2.3bn pa – Universal Student Allowance and zero fees.

And this is before hordes more people decide to go to University because it is free.

4. $1.9bn pa – reduction of company tax rate to 25%.

No funding detail provided

5. $1.3bn – ban inshore fishing and provide compensation to the commercial fishers.

No detail at all given on funding

6$1.1bn pa – fix interest rates at 2% per annum for 5 years for first home buyers.

No funding provided and this doesn’t consider the flood of extra buyers who would be drawn in by such low rates

7. $845m pa – raising the minimum wage to $20 ph.

No funding detail provided

8. $450m pa – replacing 1080 with alternate pest eradication methods.

No funding detail provided

9. $324m pa – 1800 more police.

No funding detail provided

10. $3.6bn pa – Removal of GST from fruit and vegetables.

To be funded apparently by a “tax evasion crackdown”, and clamping down on the black economy. No realism at all provided to this throwaway line – it’s grossly inadequate of the %3.6bn pa required.

The above list is by no means exhaustive but provides an idea of the absurdity of the Peters programme. All up it will cost somewhere of the order of $12.5bn per annum plus at least $18bn of one-off costs. To cover this would require a 50% increase in income tax rates & even then the $18bn of one-off costs needs to be raised.

http://www.top.org.nz/peters_porkies

Leave a comment

4 Comments

  1. Conspiratoor

     /  September 11, 2017

    30 to 40% of tertiaries bugger off overseas after they graduate. I’d say keeping them here is a jo brainer. And it’s not $5b

    Reply
  2. Kitty Catkin

     /  September 11, 2017

    I’ve got the vote, if you’ll show the money, honey.

    Reply
  3. pdm

     /  September 11, 2017

    If he is dropping the Company Tax Rate to 25% he will need to drop the toppersonal tax rate to that as well otherwise it will be an incentive for people to use creative measures to reduce their tax commitments.

    Perhaps he is contemplating a flat tax regime.

    Reply

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