Labour v National on income tax

Labour and National are making claims and counter claims on income tax. They are both sort of right, but it’s not something that Labour probably want a lot of publicity about.

National have already put in place legislation that will bring in tax cuts of up to about a thousand dollars a year for anyone earner the media wage or more. Those earning less will get less of a cut.

Labour have said they will reverse those cuts. National claims that constitutes a tax increase – it is not an increase on current rates but means all income earners will pay tax than they would if nothing was changed.

National: National’s latest ad is for hard-working Kiwis

National’s newest campaign ad “Let’s tax this” highlights the tax burden Labour would impose on hard working New Zealanders, National Party Campaign Chair Steven Joyce says.

“New Zealand’s economy is growing strongly. As a result we’re creating more permanent jobs and growing family incomes,” Mr Joyce says.

“With a strong economy we have the opportunity to meet long-term challenges as with the Prime Minister’s commitment to lift 100,000 more children out of poverty and give 80,000 more Kiwis the chance to get into their first home.

“Labour wants to stall our economic success through heaping at least seven new taxes on New Zealanders just when they’re starting to get ahead.

“New Zealand currently has a broad-based fair tax system. We simply don’t need to impose a Capital Gains Tax, Land Tax, Regional Fuel Tax, extra Income Tax, Water Tax or an Inheritance Tax. We also don’t need to bring farming into an ETS when no other farmers worldwide are included.

“Labour needs to front up and be honest about its tax agenda. It’s quite obvious they have one and they don’t want to talk about it. Real transparency is the least that hard-working New Zealanders deserve.

“Voters are becoming aware of the clear choice facing them this election. It’s between continuing to go forward with Bill English’s strong National team or backwards with Labour and its very different economic agenda.”

Labour:

LabourNoTaxCuts

National: Labour would put up income tax for average wage workers

The Labour Party is misleading New Zealand workers by trying to suggest they won’t increase income taxes, National Party Revenue spokesperson Judith Collins says.

“Labour is simply factually wrong – they would force someone on the average wage to pay $1060 a year more in tax,” Ms Collins says.

“Under the current law in New Zealand, passed by Parliament – including with the support of the Greens – the bottom two tax thresholds will increase from April 1 next year.

“That means annual earnings of up to $22,000 will be taxed at 10.5 per cent, and earnings between $22,001 and $52,000 will be taxed at 17.5 per cent.

“These changes were made in response to rising incomes, and go some way to countering the effects of fiscal drag on low and middle income earners, where they otherwise move into higher tax brackets as their income increases.

“In pledging to reverse the current law, there is absolutely no doubt that Labour is seeking to increase income taxes.

“If they were to be elected and proceed with their changes, people on incomes of $52,000 a year or higher will be paying $1060 more income tax per year from 1 April than will currently be the case.

“National doesn’t believe that someone on the median wage should end up with a tax rate of 30 cents in the dollar. Without our approach, that’s what would happen.

“Labour needs to be upfront with New Zealanders. Under Labour income tax is going up.”

Labour: National’s tax cuts reckless and irresponsible

It is time for Bill English and Steven Joyce to stop the scaremongering and lies, and front up to New Zealanders about the impact of their tax cuts, Labour’s Finance spokesperson Grant Robertson says.

“Bill English has no credibility on tax issues. He was the Finance Minister in a Government that increased GST after specifically ruling that out in the election campaign.

“National has introduced 18 new taxes, levies and charges, including one on the capital gain from an investment property within two years. Again, National never talked about this in an election campaign.

“Today National have an advertisement saying Labour will increase personal taxes. This is completely untrue.

“Let’s set the record straight: Contrary to National’s patently false scaremongering about income tax, Labour’s families package makes 70 per cent of families with kids better off than under National.

“What we will do is reverse the tax cuts proposed by Bill English and Steven Joyce that will see $400 million a year go to the top ten per cent of New Zealanders.

“Those tax cuts are reckless and irresponsible at a time when so many of the big issues facing New Zealand are getting worse.

“How can tax cuts be responsible when homelessness is at record levels and the OECD have said we are the worst in the world?

“How can tax cuts be responsible when hospitals are putting up the house full sign, and our mental health system is collapsing under hugely increased demand?

“How can tax cuts be responsible when our schools are so stretched that they have to ask parents for more and more money to just do the basics?

“New Zealanders know these tax cuts are wrong and that National have got their priorities badly wrong. Even the majority of CEOs in yesterday’s Mood of The Boardroom said now is not the time for tax cuts.

“The reality is that after nine years of National Government the basic services that New Zealanders rely on are running on empty, and many families are being left out.

“We can be better than that and Labour has the plan to make this happen, by rejecting National’s tax cuts and investing in our targeted families package and in the public services Kiwis rely on,” says Grant Robertson.

Labour were already under pressure over tax. This keeps the attention on it.

38 Comments

  1. PDB

     /  September 13, 2017

    Robertson is spinning here: ““Today National have an advertisement saying Labour will increase personal taxes. This is completely untrue.”

    “What we will do is reverse the tax cuts proposed by Bill English and Steven Joyce that will see $400 million a year go to the top ten per cent of New Zealanders.”

    The tax cuts aren’t being ‘proposed’ they have been written into law. By increasing them back to current levels if in power Labour is indeed increasing income tax. That is fact & National are quite correct.

    • “What we will do is reverse the tax cuts proposed by Bill English and Steven Joyce that will see $400 million a year go to the top ten per cent of New Zealanders.”

      That’s blatantly misleading too. They will also reverse tax cuts to everyone else, including the many income earners that don’t have children who get nothing from Labour’s tax package.

      • Blazer

         /  September 13, 2017

        Nothing misleading at all in that statement.

        • PDB

           /  September 13, 2017

          Labour a bit misleading about only running a ‘positive campaign’ too;

          • Blazer

             /  September 13, 2017

            whats negative about that,truth is truth.

          • Corky

             /  September 13, 2017

            Good ol’ Trev. An honest hate filled Leftie. Not like these fakes on blog sites.

            • Zedd

               /  September 13, 2017

              @Corkey

              ,, & that worse than : fearmongering, hate filled Righties !?
              Yes we all wanted GST increased to 15% & taxcuts targeted to the top end.. NOT

              Wake up & smell the air dude.. its stinks under this TORY mob, whose only real policy is spread the B-S as thick as possible & hope enough fools continue believing it, to stay in power

              “3 more years.. HELL NO !!” 😦

            • Corky

               /  September 13, 2017

              I rest my case. Thanks Zedd%.

            • Zedd

               /  September 13, 2017

              your welcome……… corkey 😀

              Its always good to hear you agreeing that it IS time for a change, from this tired, outdated mob of greedy, smug, selfish…….. ‘tories’

      • PDB

         /  September 13, 2017

        I’m surprised Labour didn’t mention the very first taxes shown in the ad which seem to refer to CGT & land tax on the family home which they have ruled out? They’re obviously focused on pretending they are not touching peoples income taxes (which is untrue as I point out above).

        • Patzcuaro

           /  September 13, 2017

          @ PHD Shouldn’t you be putting a National Party authorisation statement on all your posts

    • Blazer

       /  September 13, 2017

      they are only correct in Nationals mind.Just like the number of people who emmigrate.They may have written them into law, but until they are actually operative they are meaningless.

      • High Flying Duck

         /  September 13, 2017

        Labour would have to pass a law to get rid of them. They therefore would literally have to legislate a tax increase to stop them taking effect.

        • Blazer

           /  September 14, 2017

          rubbish,your bow is longer than Joyces …nose.

          • High Flying Duck

             /  September 14, 2017

            Tell me where it is rubbish – the Tax cuts are law.

            • Blazer

               /  September 14, 2017

              National are being dishonest unless you think it is acceptable to introduce a raft of deferred legislation prior to being elected.

            • High Flying Duck

               /  September 14, 2017

              You seem to think an election gives a mandate for 2 years and then nothing should happen in the third in case they are voted out – someone should have said that to Cullen in 2008…
              All parties except Labour supported the budget this year. They are the ones being dishonest.

            • Blazer

               /  September 14, 2017

              how is it being dishonest to refrain from supporting what you do not agree with!Please ..’Labour did it too’…pathetic.

            • High Flying Duck

               /  September 14, 2017

              Once more you completely missed my point. Its no wonder you have such a bizarre view in things. You live in a parallel universe.
              You ignored the bit about actually being able to govern for three years which was the main thrust.
              Cullen actually put policies in place specifically to stuff the incoming government which was a disgrace, but Labour had the right to do it.

  2. Blazer

     /  September 13, 2017

    National have no vision for the future,so they resort to their usual attack politics .Hit on Peters first,and now full bore on misinformation,lies and scaremongering.

    • PDB

       /  September 13, 2017

      “full bore on misinformation,lies and scaremongering.” – sounds more like your posts on this blog?

      • robertguyton

         /  September 13, 2017

        Why would anyone believe anything Steven Joyce says?
        Why?

  3. robertguyton

     /  September 13, 2017

    “Yang said his students were simply monitoring communications, rather than carrying out “the physical act of spying”.

    “If you define those cadets or students as spies, then yes, I was teaching spies.”

    But Yang said he did not consider those students to be spies, personally. “They were collecting information.”

  4. Blazer

     /  September 13, 2017

    don’t need Labour to increase taxes…National go about it…quietly..
    GST increase from 12.5% to 15%
    Increased taxes on KiwiSaver
    Compulsory student loan payment increase from 10% to 12%
    Increased tertiary fees
    The 2012 ‘Paperboy’ tax
    Civil Aviation Authority fees rise
    Additional fuel tax increase of 9 cents with annual CPI increases locked in for perpetuity
    Road User Charges increased
    New annual student loan fees introduced
    Massive unnecessary ACC levy increases
    Prescription fees increased by 66%
    New online company filing fees imposed on businesses
    Creeping expansion of the scope of Fringe Benefit Taxes – National tried to tax car parks and plain-clothes police uniforms
    Lowering of Working for Families abatement threshold and increasing the abatement rate, taking money out of the pockets of families
    Imposing a $900 Family Court fee
    “John Key was also wrong on capital gains tax. The CGT will not apply to the family home – including if the family home is owned through a trustshare on twitter

    • PDB

       /  September 13, 2017

      Looks like you are scraping the barrel there Blazer………you also forgot lowering income taxes, vehicle licensing and registration fees and ACC levies with more income tax reductions passed into law starting next year. Funny that?

    • High Flying Duck

       /  September 13, 2017

      How is increasing a loan payment a tax? And trying to change FBT? That was IRD and It didn’t actually change.
      WFF was changed as part on a tax decrease leaving no one worse off.
      Independent earner tax credit was also brought in by National.

  5. Corky

     /  September 13, 2017

    Another piviotal ad from National. A real ripper. The only thing that can ace that is a flood of last minute signed up young voters. This ad will keep National in the race. National now applying the hurt on Jacinda.

    • alloytoo

       /  September 13, 2017

      I wouldn’t presume that young voters will all support Jacinda, even my 13 year is passing comments about vague she is about everything.

      • Blazer

         /  September 14, 2017

        really!My 8 y.o says why does National tell so many…liars..Dad?

      • Corky

         /  September 14, 2017

        Good stuff. Your girl is obviously on the RIGHT side of the bell curve.

  6. Ray

     /  September 14, 2017

    Blazer, judging by your industrial strength spinning on this blog and your efforts elsewhere I am not surprised your poor little kiddy has been thoroughly brain washed.
    But once they realise what a crock you have sold them I am prepared to bet real money they will be Young Nationals at 18 and probably right wing MPs at 30.

    • Blazer

       /  September 14, 2017

      will you still be around in 30 years…Ray,Ray?

      • Ray

         /  September 14, 2017

        Who knows but my Trust will be.
        I do have a couple of uncles 30 years older than me though.

        • Blazer

           /  September 14, 2017

          well I hope you live a healthy ,prosperous,long and rewarding life Ray.If you get any dizzy spells…take a break from spinning..all over twitter and blog sites.