By Chris Trotter*
If ever there was an opportunity for a conservative leader to seize the political initiative it was this past week. Seldom, in the post-war period, has there been such a confluence of disturbing and distressing events. War in Europe. Flames in Parliament Grounds. Covid-19 cases surging above 20,000 per day. Petrol prices topping $3.00 per litre.
A forceful demonstration of leadership by the Leader of the Opposition was required. A performance that not only addressed the hurt and confusion of New Zealanders, but also offered them reassurance and guidance.
On Sunday, 6 March 2022, the opportunity for a game-changing “State of the Nation” speech was right there in front of National’s Christopher Luxon.
Why didn’t he seize it? Why was his SOTN address such a limp and uninspiring effort? Political leaders worthy of the name possess an intuitive feel for what is on the voters’ mind. They don’t need a pollster to identify the main topics of conversation at the nation’s dinner-tables, office water-coolers, and public bars.
Given the week we have all lived through, Luxon’s speech should have been about security: what has happened to it, and how it might be restored. That is what the country wanted to hear, but that is not what the country got.
Luxon’s SOTN speech was straight out of National’s “Boiler Plate” file. Conventionally structured, rhetorically flat, and offering a policy package indistinguishable from all the other, equally undistinguished, SOTN speeches delivered over the past five years.
In a week when smoke billowed over Kyiv and Wellington: when New Zealanders had been frightened and angered by a series of shattering and bewildering events; what did National’s leader offer?
Tax cuts.
In a nation confronted with the enormous challenge of actually doing something meaningful about climate change – tax cuts. In a country where the restoration of social cohesion could hardly be more urgent – tax cuts. In a world where the red-lines of international conduct have been obliterated under the tracks of Russian tanks – tax cuts. (Although, to be fair, Luxon did address a few maudlin sentences to the people of Ukraine at the top of his address.)
This was not the speech of a serious – or even a very careful – politician. In his de rigueur castigation of Labour’s “socialism”, Luxon offered up the following anecdote:
“I remember sitting in a modest Moscow flat with a couple in their late 40s on a dark and snowy afternoon. It couldn’t have been clearer that socialism – in terms of Government control of everyday life and lack of rewards for hard work – had abjectly failed and actually created misery.”
Except that the Soviet Union blipped-off History’s screen in 1991 – when Luxon was still a university student. The earliest he is likely to have visited Moscow as an employee of Unilever was sometime after 1993. That would put his Moscow family squarely in the period of Neoliberal “Shock Therapy”. It was a time of accelerated social and economic collapse as millions of Russian workers lost their jobs, their homes, their pensions, and their hopes. The Yeltsin Years, when average Russian life expectancy actually fell.
If you’re going to sing the damnations of Soviet socialism, it helps to belong to a generation old enough to remember it!
The “Moscow Family” story is, however, illustrative of the “paint-by-numbers” approach of Luxon’s speechwriters. Clearly, the National Party possesses no one as talented as John F. Kennedy’s Ted Sorenson, or the US Republican Party’s Peggy Noonan and Pat Buchanan. Even more clearly, Luxon lacks the literary skills of a Barack Obama. The rhetorical genius of a Winston Churchill? … Sadly, no.
Does it matter?
Surely, the preponderance of recent poll data indicates that all Luxon has to do to win in 2023 is to sit still and not be Jacinda Ardern. If he can do that for the next 18 months, then all the smart money is on him becoming New Zealand’s next prime minister. Why draw attention to yourself with grandiose speeches about the state of your country and/or the state of the world? Surely, the offer of modest tax cuts is precisely the sort of small, but ideologically reassuring, gesture that will get National over the line?
Perhaps. If all the indicators pointed to New Zealand emerging from the worst of the Covid-19 Pandemic by the end of the third quarter of 2022, with life rapidly returning to normal by Christmas – well then, sitting still and saying as little as possible probably would be the best strategy. Especially if the fast-fading Covid Crisis throws into sharp relief all the unfinished and unstarted business of the Labour Government.
But is that any longer a particularly likely scenario? Is it not more probable that the Russo-Ukrainian War, internationally, and the ongoing breakdown of social cohesion, domestically, will foster a much starker, less forgiving, and more polarising kind of politics? A politics of daunting policy options and high-stakes gambles. A politics of fearless saviours and unforgiving avengers. Luxon might just pass muster as the hero of a fluffy Hollywood rom-com, but he hardly makes the cut as a Marvel super-hero.
Certainly, there is nothing in Luxon’s SOTN address to match the tone of Jacinda Ardern’s speech following the extraordinary events of 2 March 2022. This was not a “kind” speech. Indeed, it revealed the Prime Minister’s cold fury at what had transpired on Parliament Grounds. More importantly, it drew attention to the explosion of misinformation and disinformation that had fed the violence of Parliament’s front lawn, and which continues to eat away at the nation’s social cohesion. Something, she warned, that would have to be addressed.
Set forth in Ardern’s speech are the themes that will likely drive the political discourse of the next eighteen months. Perhaps the best way to encapsulate the Government’s new strategy is to cite the title of that greatest of trade union fighting songs: “Which Side Are You On?”
In its essence, it will ask the New Zealand electorate to choose between those who understand how radically the world has changed, and how much the country needs to change if it’s to keep up; and those who refuse to acknowledge that New Zealand is well beyond being restored to something approaching normal by a handful of modest tax cuts.
In the scathing words of Finance Minister Grant Robertson:
“National is still missing in action on a plan for the major issues that will define New Zealand’s future. The speech said nothing about how we will meet the challenge of climate change or seize the economic opportunities that come from a low carbon economy to provide higher wage jobs.”
Luxon will need to lift his game by a significant margin if he is not to find himself and his party positioned on the wrong side of history.
Recalling the first verse of “Which Side Are You On”:
They say in Harlan County
There are no neutrals there.
You’ll either be a union man
Or a thug for J. H. Blair.
If Luxon lets Labour manoeuvre him into the role of J.H. Blair, then he can kiss good-bye his chances of becoming Prime Minister.
To have a fighting chance, he’ll need a lot more than tax cuts.
*Chris Trotter has been writing and commenting professionally about New Zealand politics for more than 30 years. He writes a weekly column for interest.co.nz. His work may also be found at http://bowalleyroad.blogspot.com.
156 Comments
I don't have a problem with progressive rates. I DO have a problem with a) the government mandating an inflationary environment through the PTA with the RBNZ and b) there being no consequences for when the RBNZ just flat out fails to uphold their end of the deal and we end up with massive inflationary overshoot.
To then punish workers by clipping the ticket on the payrises they need because you legislated inflation into existence and won't demand it be controlled by meaningful RBNZ action is immoral. And yet somehow double-speak calls fixing this a 'tax cut'.
This guy is turning into a huge disappointment so far. Hanging out with some National voting friends in the weekend.. even they were rolling their eyes at tax cuts saying they don't want the extra $20 a week when healthcare and education etc are in the state they are.
Edit: A wild billion dollar hole appears
I agree. I want so much to vote for National, but all they are coming back with is the old tired tax cut message. Healthcare and education are in a pitiful state and they actually need more investment, not less.
National should have a package to aggressively support and promote business growth and investment, redirect resources away from unproductive housing speculation and into the real economy, sack and replace the whole RBNZ's management and implement a normalization of monetary policy, focus public money into effective investment rather than in an ever-growing bureaucratic apparatus, wind back the implicit separatist agenda promoted by Labour, and implement policies at national level that rein in out of control and wasteful spending by councils.
Such a lack of vision and imagination.
Redirecting resources away from housing speculation is one thing they won't do. Last election they wanted to reintroduce foreign buyers and reduce the bright line test and were strongly opposed removing interest deductibility from investors. Their core voting base owns lots of property. This for me is why I may never vote National again. They aren't the party for business or innovation, they are the party for the entitled and out of touch rich that want nothing to change.
Sorry fortunr, it's generally only people that are not particularly affected by tax increases that think a message of tax cuts is "tired". It's always good when it's someone elses money huh?
On what basis do you claim that healthcare and education are in a pitiful state? And more particularly, why can't the current expenditure be monitored to provide outcomes? You might remember that Labour rolled back measurement of outcomes and went back to what you are proposing, just throw more and more money at the issue. Even though that has never worked.
I'd also suggest (as I think in some instance you are), on top of National cutting taxes back to what they were before Labour arrived, they cut the minimum wage and benefits back to what they were, and make every Government department cut 10% from their budget, then do a thorough analysis of whether any quasi departments are even needed. That'd help.
it's generally only people that are not particularly affected by tax increases that think a message of tax cuts is "tired". It's always good when it's someone elses money huh?
Not at all. I'm nearer those top brackets and have never had an issue with the tax I pay. I do however have issue with my productivity being taxed while speculators reap the rewards.
Nationals take on this is the same old and uninspiring. They have Labour on the ropes here. They could win a lot of votes with sensible tax changes. Instead, here we are - restore the handouts to speculators. Absolutely no interest in moving us forward, only back.
Surely adjusting tax brackets for inflation is a supremely "sensible tax change"? It simply means keeping one's household income the same over time (in the absence of changes to income). To suggest it isn't even to suggest a "tax cut", it's to object to perpetual tax increases by stealth.
Northman, as I say, people not particularly affected by tax increases are NOT those that are in the top bracket. And those folk (including me) are not that big a fan of having near 40% of their income shaved off on their highest earnings. Being "near" is not being "in". And what's the difference between your productivity being taxed and someone in the top tax brackets productivity being taxed? And why on earth would you have a problem with speculators? High risk, high return. And when you take a bath, you really take a bath. Virtually none of the high tech industries would exist today without those willing to speculate.
As a matter of interest, what tax rates do you deem as being reasonable? This of course, is a question that the Labour Party and their supporters will NEVER answer. They just say "people should pay their fair share". Without ever defining "fair share".
I agree, he was shocking and not a chance I'm going to vote for John Key Mk 2 come the election. We desperately need someone to give us hope for the future of our children and grandchildren, but he's not the one. Is there anyone else out there with some sort of vision?
Seriously brisket? Key is a genius orator compared to "I reject the premise of your question" Ardern. At least he could actually answer questions put to him, about pretty much anything that was going on in the Government. Ardern can barely answer questions she was given in advance.
I find Ardern's condescending tone an aggravation, but she does speak clearly. I prefer "I'm not going to answer that question" to the kind of obfuscating haze that National ministers perfected, where they go in to an interview with a set of phrases prepared and deliver them all regardless of the questions asked.
"Akshully - I think I may have mentioned a possibility of perhaps doing something similar but I can't recall any of the specifics of that similar something. I'll get someone to get back to you at some time when we have some more specifics on that something similar that we can't ackshully specify"
Really disappointed in his plan to allow interest deductibility for landlords again. This may help National consolidate their current voting base and win back Act supporters, but when will they realise that they have to take votes off Labour and the Greens if they want to take back power. I would love to vote National at the next election, but tax cuts and fuelling another housing boom are not policies that excite me. The contrast between 1990s Russia and National was ridiculous. He has spent too much time on Facebook, if he thinks Ardern leads a Soviet style government. I fear that Luxon has started to listen to party advisers, hopefully not the same ones that Collins and Bridges used.
In all my businesses I expect to pay tax on my profits, and to deduct my expenses. Quite simple. I have paid many a dollar tax on capital gains because I am in the business of buying and selling properties. I would expect to claim my losses if I had a capital loss on my transactions. That is how business in NZ works. If a government panders to a sector of the voters at the expense of another sector, showing their ignorance of how things work as they do it, they cannot say they didn't expect the obvious consequences. Even larger shortages of poor people's housing than they already have.
Either Luxon or Ardern will be PM after the election. That's the choice and it doesn't thrill me.
This government has been a major disappointment in so many respects. I am quite willing to celebrate that our death rate is so low, but that's about it. Long on rhetoric, woefully short on delivery.The overall quality of ministers is poor and I don't think they deserve another term
Luxon is corporate man writ large. I support doing something about bracket creep, but nothing else he offers is at all inspiring.
I have voted at every election for almost 60 years, but will seriously consider not voting this time round.
I'm happy with what labour has done on property, whether or not the effects have been seen in the face of extreme monetary policy and supply constraints is a separate thing as what they have done is much more than what National would have. And it takes time to move the whale the housing market and we may now be seeing the effects with the current slowdown.
As much as I dislike The current govt. National seem set on opening us up to even more immigrants. Not even suger coating it. Check out thier website. Clearly stated as a policy.
Socialist heaven or 50k extra Chinese every year?
When will parties understand, what the majority of people want =No immigration and Controlled inflation (Inc housing)
Kinda like in nz we need to choose one or the other?
Lots of people here have the memory of a goldfish, how many were Labour letting in pre-Covid ? yep that's right way more then 50K P/A. I seem to remember Winnie going for 20-30K but that quickly flew out the window once he got in. We are going to be lucky if they "Only" let in 50K a year. national have my vote, simply cannot take another term of this Labour government they will finish us off. Like I have said before come 2023 your going to be begging to get rid of the current lot. Its going to be even worse now than I expected with the war, if thats even possible.
Petrol Tax at 52% cripples people going to Work to pay the Taxes that this Government Wastes everytime that they Flog the Poor people of New Zealand.
Flogging us with Taxes is a pain in the neck....as are ALL Government Wastrels.
A bit of Common Sense needs to be applied.....not more taxes and Waste Crap.
You do know that roads cost crap loads of money to build and maintain, right? Are you saying that should all come out of general tax instead of fuel tax? Wouldn't that just be a subsidy of those who drive lots by those who don't? I don't want to pay for roads when I hardly use them.
The funny thing is that cutting fuel tax without cutting transport investment would be a very socialist thing to do, maybe Luxon is closer to Moscow than he thinks.
When you build Crap Roads, you will need loads of Crap Taxes to maintain Crap Roads and fund Crap Decisions by Crap Politicians and Public Servants to maintain their Lifestyle in the Shite we are currently under going. Spending more and more borrowed munny on more and more Fund-a-Mental items is a rocky road to follow. Especially when windscreens are so breakable and floods of rain fill our Roads with water that should have been catered for in this Year of too much rain and rock hard soils that need Drainage built into all stupid Houses, on stupid Flood plains, by Rivers and the Like. ...I can rant on about what is wrong.......only a Intulligent Polutikan can put it write....sorry Right.......tis why I blog.
Unlike health, education and living expenses, I don't really consider roads a necessity that should be subsidised by the state. I put it in the same category as electricity, internet, etc: we need them, but we should pay to use them, otherwise we would consume more than we need to. I personally think the roads are currently way too cheap hence the levels of congestion, pollution and fat people (myself included).
As for tolls, isn't fuel tax the most efficient and fair form of toll?
What a disappointment Luxon is. As an ex National voter I was waiting for some inspirational ideas about how we can fix some of the problems we have in NZ
Our Health system is under huge pressure staff are already leaving in large numbers because of poor wages and conditions so he offers tax cuts, how will that help.
we could all list some really pressing issues that need addressing but he just pulled out the old playbook of free market will fix everything
Where are all the inspirational leaders with some vision?
Problem being for an inspirational visionary politician to fix our issues means they must propose PAIN on voters… maybe some get more pain, but, ultimately we all have to sacrifice something to fix it - that takes big KAHUNAS to do that…. Imagine it.. I mean the capital gains tax was thrown out because of self interest. Would we repeal some the carbon taxes for relief? we could go on… but the fans will not be happy
Most of the comments here and indeed CT is a huge disappointment here. In this I see CT as being out of touch. Yes the village idiots drew the media attention at Wellington, but unseen and drowned out were all the others with legitimate concerns about the track the current Government is on. Our Government has directed no pay rises for Government servants for three years, and with the majority earning around or slightly more than the median wage, and many others working on or less than that inflation is hurting big time. But our Government seems oblivious, disconnected and out of touch.
CT says;"Luxon’s speech should have been about security: what has happened to it, and how it might be restored. That is what the country wanted to hear," How does he know this? Most people are very removed from Ukraine. They're too busy trying to pay their own bills and don't believe we are next on Putin's hit list.
I think Luxon has come closest to addressing people's real concerns than any other politician so far. But it is so far out from an election it is too early to really judge, so let's see how this builds and morphs?
Don't disagree PDK. No discussion of population size, no discussion of development of alternatives to fossil fuels, no discussion on how to make life more affordable and liveable for our people, no discussion on national resilience. The only topics apparently acceptable to discuss is the power and security of the Government.
https://www.scoop.co.nz/stories/PA1409/S00053/at-least-15-new-taxes-und…“The truth is that John Key’s Government has imposed at least 15 new taxes:
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
This has literally nothing to do with the Key government, and I note that almost none of these would pass the 'new taxes' bar that this government has set for themselves, with their various cop-outs around 'oh, it's not a tax, it's a levy' anyway. This crappy talking point list is dead in the water and was never relevant to begin with.
Spin harder.
You appear to be rallying against a government that hasn't been in power for five years now. Maybe your scrutiny is better directed at, you know, the government currently in power with an absolute majority that could actually do something about this kind of thing if they actually wanted to?
Again,if you say so...remember,history can be the best indication of the future.
Just most of Christophers policy could have been an old Nat party policy from 10 years ago...
As people are won't to say,some body has to pay going forward,so reducing the tax take will not build more hospitals or roads.
$20 won't go far when there is PPP toll roads and PPP hospitals...
We already have toll roads. And currently we just aren't building or adding hospitals at all. And we're still having a bunch of crap being slugged onto us as living costs explode. So what is your actual point here, other than refusing to acknowledge the current government is as bad, if not worse than the government from five years ago you're determined to hold to a higher standard than the one we actually have now?
You're the one who is saying National was worse, mate. But I get it, red team good, blue team bad. Just don't kid yourself that you actually give a shit about working Kiwis trying to get by.
Everything is just peachy provided it's Labour in charge, if if they preside over a lazy do-nothing government that accelerates the decay they're apparently so concerned about.
Crikey GV,you are grumpy today...never said everything is peachy,global pandemic,supply chain knackered,Ukraine conflict etc...just suggesting your 'blue tinted glasses' maybe preventing you to see objectively.
Perhaps Luxon could go and mediate Russia/Ukraine...tax cuts could bring about a truce..
And just to be clear,I have voted for JK early on,Labour and even Winnie as a 'hand brake'
I don't think I'm having trouble with objectivity, just fed up with people who make excuses or play for misdirection on the basis of tribalism while living costs explode and ordinary working people go backwards at a rapid rate of knots.
If that's 'blue tinted glasses' then call me Bono, I guess.
https://www.health.govt.nz/our-work/health-infrastructure-unit-hiu/dune…
On 19 April 2021 Cabinet approved the final Detailed Business Case for the New Dunedin Hospital project at a total value of $1.47 billion.
The new hospital will be built in two stages:
- An Outpatient Building (planned to open in January 2025)
This will include ambulatory services, clinic rooms, day procedures and non-urgent radiology. - An Inpatient Building (planned to open in April 2028)
This includes an emergency department, operating theatres and other services including a dedicated primary birthing unit.
I couldn't find any update of how the project is going other than the announcement from almost a year ago, so thanks for the on-the-ground update. Forgive me for thinking that business case exercise probably went the same way as the Auckland transit ones, I'm sure you can understand my cynicism.
You can add to this the recently opened Greymouth Hospital, and substantial new buildings in Christchurch (Waipapa building) and more planned (1 or 2 more towers added to Waipapa and a bunch of other buildings in the works).
Presumably the North Island has had some developments too, but I haven't been following them.
https://www.countiesmanukau.health.nz/news/extra-funding-approved-for-m…
Media release 22 August 2018 | Health Minister Dr David Clark says the Government has approved an extra $11.5 million funding for building works at Middlemore Hospital.
The funding, which was signed off early this week, will be used for re-cladding work on the Scott Building which has issues with weathertightness, timber framing decay and related damage. The extra injection of funds takes the total cost of the project to $27.5 million.
lol vman, raising prices of a university to cover its costs is a tax is it? Making debtors pay their debts back is a tax is it? Loan fees are a tax are they? ACC, which had a billion dollar hole, created by the prior Labour government, in it's balance sheet when National took over, should have just let it be should it? Filing fees on companies, which had been taken off, then put back on to cover the costs of running the service, is a tax is it? Prescription fees to get drugs for yourself are taxes are they? This article was debunked as nonsense when it was produced, now here it is again. Sigh.
All I'm saying is that on the basis of one or two 'aspirational' speeches,Mr luxon is the new messiah.
We have heard it all before from all sides...we were going to gain wage parity with Australia at one point,they all say we want better for our people,raise the GDP,higher wage economy, lower costs etc ...it's all rhetoric until they get in and face reality...x amount in and x amount out.
It's a balancing act that few have conquered.
https://www.newshub.co.nz/home/politics/2018/11/fact-check-who-taxed-yo…
"Jacinda blames the petrol companies, Simon blames the Labour Party. The truth is, both Labour and National have put 35 cents each on petrol tax during their times. The real thing the Commerce Commission should be looking at is the cosy Labour-National duopoly, where they both blame each other and they both screw the motorist."
That says everything you need to know about ACT. Fuel tax is the most user pays tax in NZ, all of it goes to the land transport fund to be spent almost exclusively on roads.
- Do ACT not like user pays?
- Would they prefer the cost of roads be socialised?
- Or do they want less investment in roads?
- Or would they prefer to privatise the entire roading network?
The real answer is that their voters use roads lots so they want to socialise it, they only stick to their core principles when it suits.
https://www.interest.co.nz/opinion/96526/jen%E2%80%8B%C3%A9e-tibshraeny…
Jenée Tibshraeny crunches the numbers to figure out whether criticisms that the Labour Party is the 'tax party' are well-founded
It's been such a long time since we've had a leader with a clearly articulated vision for the country. Luxon really came up short with this speech, and the thinking behind it just rung hollow. Interesting to see the comment below about the eye-rolling from National party voters - in an attempt to further shore up the support from wandering National voters it appears they went back to type. But have they mis-read the room?
Was also interesting (and somewhat cringey) to hear the NZ Initiative economist on RNZ this morning talk about Labour's 'dumb' policies. They no doubt had inputs into Luxon and Bridges' thinking. Although the CTU economist may have been a little too far left I'm a believer that inaction is often as bad as - or worse - than not making a decision. The brightline test and interest deductibility have at least shifted peoples' thinking about housing (setting aside broader goings-on).
Back to the Future by National. Pathetic. I can't believe Willis is going along with all this. I believed her when she said she wanted to fix housing. I'm sticking with Labour. At least they've made some bold moves with regard to property taxes on investment properties. It's just taking a while for the impacts to show.
https://www.act.org.nz/policies
Remember ACT will be in coalition;
They don't appear to have a transport policy,but here are some of their other policies.
ACT would establish Public-Private Partnerships (PPP) with large, global infrastructure developers and investors for new build and long-term facility lease arrangements. PPPs would be used for the refurbishment and upgrades to existing facilities, and would be converted to long-term lease backs.
ACT’S Real Solution For Fair Firearms
How Employment Insurance Would Work
Income tax rates remain unchanged but 1 percent of the tax paid will be allocated to a ring-fenced Employment Insurance fund.
On loss of employment the tax-payer can claim 50 percent of their average weekly earnings over the previous 52 weeks (or fewer). The maximum yearly insurable earnings amount is $60,000.
We are sitting on the resources to power our economic recovery.
Debates about mining have failed to distinguish high-value conservation land that must be protected from land with little or no conservation value. By opening up the latter to development, we could free up resources for doing real conservation where it counts.
ACT will:
- Continue to be a pro-immigration party, honouring our heritage as a nation of immigrants, while trimming back overly generous entitlements such as pensions after only ten years’ residency.
Funny that so many were scared of the greens! ACT are the real looney party in NZ, people assume they are the small government low tax party, but they have some weird values too.
And as for the flat tax, they want it to be 17.5%. They would have to drastically decrease government services for that (not just benefits).
ACT are libertarians. So if they got into power completely they would cut the public service to about 20% of what it is now and sell off all the hospitals and schools etc, then make people get health insurance and pay for all schooling. All they are likely to keep would be military/police/justice as public organisations, even government departments like Stats would likely be sold off to be a bunch of competitive think tanks providing economic statistics. Roading would definitely be sold off and user pays.
Tax cuts are just the average taxpayer getting back some of the decade plus bracket creep that has occurred with their wage increases.Both SIDES are as bad as each other,the tax take is considerably higher each year now so this wont cut health or education spending which is only going to one sector of the Community at present anyhow.
CT has missed his own boat if he thinks the average Kiwi has any idea why Ukraine is so important and really care what`
s happening there,we only care about ourselves and what`s in it for us.
Not the best speech but perhaps a good test the waters speech on what people are looking for.
Also don`t forget most of those burning up Parliament came from the other SIDEs two parties so there`s nothing to be gained there,they have had their hopes shattered already.
They also want to remove the brightline test (probably take it back to 2 years where it is almost pointless) and the rent tax, which means property investors will go back to paying almost no tax.
They also want to get rid of Auckland fuel levy, meaning they will either have to fund Auckland transport investment out of general tax or can them.
And as for the bracket creep, did they mention how they will fund those tax cuts? They won't come cheap and they won't make you that much better off, but its hard to see how they can afford them and also increase health funding, transport funding, and everything else we need unless they plan on borrowing loads.
interestingly with inflation so high the tax take gets even higher - because of GST,
So that $100.00 item you buy the government currently takes $15.00 in tax. If that $100.00 Item rises to $106.00 (in line with inflation) - the government now gets $15.90
Now start multiplying that across the total GDP of NZ- which is currently $243B - if that increases by 6% due to inflation and associated wage pressure then just in GST - the NZ government will reap $2B more in GST - about the same amount National is promising back in tax cuts.
Then add in bracket creep as people's wages increase and the government should be rolling in money- the question that needs to be asked is- will they spend it well?
I worked for a couple of decades in a large consumer goods/services multinational operating in over 100 countries. The budget discipline & delivery required annual cost increases to be always exceeded by cost savings (from all sources eg capital improvement projects, material sourcing, distribution logistics, operational continuous improvements, restructuring etc...).
I've never really heard an adequate explanation why the same shouldn't apply to the Public Sector (both Central & Local Govt).
I would back the cutting of funds used to do things like pay consultants to design a cycle way across the Auckland harbour, 3 waters reform that has been overwhelmingly rejected by councils, the legion of government PR consultants. Robertson’s new 6 billion dollar slush fund, 1 year free tertiary education ( which just gave those already going to uni a discount without increasing new student numbers ), the list is virtually endless.
Somebody (i dont care who) needs to do something about the tax brackets in the next 2 years. In 2024 Australia will remove its middle income tax brackets of 37% and 32.5% - meaning it will have a tax bracket of 30.0% from $45 000 to $200 000 - this combined with the tax free threshold of $18 200 will mean for the first time in over 50 years NZ will have a higher tax take on personal incomes (for those earning less than 200K) than Australia.
So with higher wages and a lower tax take - Australia will become very very attractive to kiwis. If NZ doesnt do something about its tax brackets the labour shortage will become a major problem and the best and brightest will once again leave our shores.
Australia may also save us from the pressures of inflation.
Just needed to pick up some black beans and canned corn from New World - Watties brand is $3.19 a can for both items, meanwhile the branded Australian Product - Edgell was $1.69 a can - who knew that Australian production (with their higher minimum wage and the most expensive shipping lane in the world) was so cheap.
P.S Edgell also name the beans country of origin (US) whilst Watties keeps it suitably vague (made form NZ and imported items)
really...this is a lot of hype about not much at all.
$2.15 a week for someone on $45k...thats going to make a difference.
I am happy to leave my $20 a week in the pot for the betterment of NZ society ;
https://www.nzherald.co.nz/business/business-leader-kirk-hope-backs-chr…
The lowest tax bracket of 10.5 percent would rise just over $15,600, the 17.5 per cent threshold would go up $53,500 and the 30 per cent to $78,100.
This would mean those earning $45,000 would have an annual tax saving of $112, those on $55,000 would save $800 and those on $85,000 would save more than $1000.
New Zealand is going through the worst pandemic in a century, and the world is confronting the possibility of a war with Russia within the next 6-12 months and all National can offer up is tax cuts that might give people an extra $20 a week? So what if we cut the Auckland Fuel Tax, that might take 10c a litre off petrol (about 3% of current petrol prices). So instead of paying $3/L it might drop to $2.90/L. Whoop-de-do! And how do we make up the road budget that is lost? So it's not a solution.
To provide the tax cuts Luxon is proposing he will need to either cut back on Government spending or borrow more. Which is it? Is he going to cut back on social welfare (when unemployment is at record lows anyway), the health system (facing a massive crisis as we speak) and education (when our education standards are slipping relative to the rest of the world)?
Luxon seems to be playing it safe this year, he's taking no risks and offering no vision. His critique of Labour being socialists and comparing Labour to the Soviet Union reeks of desperation. It's like Luxon has spent too much time reading the comments on Kiwiblog and thinking this is reflective of public opinion!!
I'm really surprised by how out of touch Luxon is.
CT has permission to write with his big wooden spoon. That's his role here. As an aging antichrist he can still find his way through a small article, and indeed shows glimpses of common sense from time to time, which is more than we can say about the current generation of lefties running the country. But his view from the union smoko room is a little blurry. Years of cigarette smoke & bad language are baked on to the windows, making the view to the real world somewhat compromised.
Luxon, however, is trying too hard. And too soon. The more he puts on the table now, the more Labour will be prepared next year. Remember Labour's PR people are a class above their politicians. In fact, a couple of classes above now I think of it. Tax cuts are a start. Reducing Wellington's state sector by 50% is another. We are a single nation of many races, not a nation of separate races. And we may need to look at our fresh water storage & quality etc. but we don't need to give control of that to one race. That is racist.
As for a separate Maori Health Authority: All that will mean is extra buildings, nurses, doctors & associated costs just so Maori can have their own hospital. Strewth, they dominate the patient rosters at our current hospitals already. You could argue they already have their own health authority.
My advice to Luxon: Hang loose bro. Don't push it too hard too soon. You've got to peak at a certain point & there's no use wasting your breath too soon. Make sure your selection policy has been upgraded. Better people make better politicians & that usually comes with some maturation & life experience. Jacinda is shooting herself in the foot every week that goes buy. Ask her where her partner is right now? She's self-destructing every time she opens her mouth. Not long to wait now.
Really shows Nationals colors. Nurses, police etc need a cost of living adjustment. This is just more of the same John Key stuff and will remain so while the National parties management (President etc) remains in play.
Id like a tax cut on productive working, but I would want it offset by a universal land tax targeting lazy land speculation.
Relieved to see I wasn't the only one bitterly disappointed. So many things in society feel f*****, so much surface area to challenge Labour on so many areas right now, but they came up instead with what sounded like a bit of a moan from the old guy at the bar over his Friday beers. A cynical appeal to voter wallets, combined with some tired socialist fearmongering, all with a theme of "lets take everything backwards a few years". And utterly bizarre choice to be making analogies with Moscow at the moment.
I picked a few statements from his SOTN speech.
Any political party could have made these.
"Where our public health and education systems are first-class for all Kiwis."
"Where we protect our natural environment and play our part on climate change"
"Today, immigrants still come here to New Zealand because they want to be judged by what they can do, freed from being held down because of who they are."
The 2nd part of this statement could equally apply to any political party
"at being faced with a sea of bureaucrats and politicians who don't listen and who don't represent them"
This one is priceless
"Where if you work hard you can afford to buy a house."
Agree Luxon needs to do better in delivering a more inspirational vision. A tax free threshold similar to Australia would be a good start assisting those on the bottom rung . If tax deductions are to be brought back on investor housing it needs to be balanced by cuts in the accomodation allowance to make it tax neutral and prevent cross subsidization. Also notable by it's absence was any mention of climate change policies, so it is deemed to hard I presume but will be a major cost in the future.
Well... Ardern was a broken record when quizzed on the living cost crisis this morning. "I totally reject that". Of course you do. At least someone is acknowledging it and putting something on the table. As to whether tax cuts are the appropriate response - depends on whether you think the government will spend the money better than you will. YMMV.
"In a nation confronted with the enormous challenge of actually doing something meaningful about climate change." - is anyone delusional enough to believe we can, with our 0.17% of global emissions and all? Define 'meaningful'.
If we show that policies and technologies work here larger countries may then follow our example. Having said that any difference we can make is important even if it is simply buying us a little more time.
There are only 3 countries in the world that emit more than a 5% share of total emissions. Should the rest of us just not care and do what we want?
Haha, yes you can see the absurdity of this pitiful argument crystallize if you take to its logical end point. "Hey, why should anyone do anything? - they only represent a 7 billionth of the problem!"
Maybe the USA could find themselves lower in the statistics if they broke off into their seperate states? that would solve everything!
It would be funny if it wasn't so damn sad...
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