Come on, when even Hooton can see Tax Cuts are insane – this is a class war minus the vocabulary to articulate it!

By
Martyn Bradbury
-
61
1930
They came in like a wrecking ball

Come on, when even Hooton can see the Tax Cuts are insane, you know we are all in an enormous amount of danger…

The IMF warns that Luxon’s planned $18 billion tax cut programme (including landlord tax breaks), scheduled to hit the economy in less than 15 weeks, is targeted at those most likely to spend the lot, which means it would be maximally inflationary.

That would delay cuts to interest rates or force the Reserve Bank to increase them again.

Luxon tries to argue that he isn’t actually proposing tax cuts. Actually, he says, they are tax relief, threshold adjustments or fixing anomalies. But he could call them bojangles if he wanted and the macro economy still wouldn’t know the difference. They would fuel inflation just the same.

The IMF says that, if more inflation is to be avoided, “it is important to calibrate the funding, timing, and the parameters of tax relief to be fiscally neutral”.

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It could have gone further. If Nicola Willis really has found $18b in spending cuts, new taxes and higher government charges, then using it all to pay back debt would see inflation and interest rates fall immediately.

But no one, including NZ First, believes she has. NZ First strategists say they have pulled back the fiscal curtains since the election but haven’t found too much that surprised them. Their discoveries shouldn’t have surprised National either, since it warned before the election that things were much worse than reported.

…the economy will do badly because National are giving rich landlords a $2.9b tax break, giving the rich $15billion in tax cuts and paying $100million out in redundancies to sacked public servants.

That’s $18.1billion this hard right racist climate denying beneficiary bashing Government are handing over to the richest amongst us!

Imagine what we could do to the physical and social infrastructure of NZ with $18.1billion.

This is a class war minus the vocabulary to articulate it because the woke middle classes have burnt all the news oxygen with their identity nonsense!

I think after the 100 days we’ve all just witness, there is an agreement now that this Government represents an extreme lurch to the right akin to Ruth Richardson and Roger Douglas combined.

We have allowed the unhinged parts of NZ First’s Conspiracy Swamp Kingdom to combine with the anti-Māori small Government fanatics inside ACT with the born-to-rule-Prickdom of National and their corporate donors to vandalise NZ Egalitarianism and mutilate the common good.

The fast track powers they’ve given Dr Pork (Shane Jones) to allow Trans National Mining interests to mine conservation land are beyond anything NZ has ever done before.

It is a licence to pollute the environment at a time when climate change is destroying the environment.

The Political Right have sold us out to their donor mates for a rampaging environmental and societal mutilation

Come on, when even Hooton can see Tax Cuts are insane.

 

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61 COMMENTS

  1. When Willis believes she has greater intelligence than the IMF, then our country is doomed.
    God she is awful.

    • That’s right. Standard and Poors too, even before the election.
      Everyone in this govt. thinks they are too smart to take advice from those better informed.
      What are all those agencies advising???? and what does she do???? the opposite, naturally. She knows best!

      This is exactly WHY Labour struggles to make headway because there’s always so much damage to repair.
      anyone who is still thinking Labour achieved nothing, remember the huge unexpected, expensive events they had to deal with as well as making up for all the lost time and opportunities a National govt. always causes.

      As country boy says there needs to be an inquiry as to why National has long since got into bed with foreign disruptors and billionaires who have been undermining us forever.
      We always get done with the acquiescence of our neo-lib govts. and we’re left scrambling in the dirt and cleaning up the mess.

      Luxon looks like a fair-weather friend. How much use will he be in another real emergency esp. when Nicola refuses to take advice? There’d be no money in the kitty and not much able to be borrowed because she wouldn’t listen. Everything cut to the bone. Even their friends might wonder who’s going to bail them out. Tax cuts in the form of new car or tractor sitting in the river. Insurance companies getting picky.
      All those lovely blue voters, disillusioned.

  2. The full moon will never look the same again. Simeon Pothole was always skinny, but Crayfish Bish looks surprisingly svelte, having been given the same hospital pass that Twyford got. Winston has had his chumbawumba moment, but it looks like Luxon will out do him with a Theresa May moment, proposing tax adjustment at a time when the reserve bank is trying everything to cautiously push the brakes on the economy to get inflation tracking down, but Luxons inflexible tunnel vision is telling him to jump on the accelerator like a hapless boy racer, and to hell with what the IMF says. He’s not learning from experience at all, after recently trying to cling to the accommodation supplement for staying in his mortgage free Wgtn apartment, and to hell with his political advisors saying the optics would be terrible. Luxons not worried because he is mortgage free, but to the ordinary folk who are Luxons bottomfeeders, that won’t be getting property investor deductibility, and who have a huge mortgage, the wrecking ball analogy is appropriate.

  3. Labour broke the economy. National may be making a terrible situation only slightly worse. They shouldn’t.

    • Under Labour, workers had gotten much needed payrises that had been withheld from them for more than 30 years.

    • The economy was broken when Key took Labours 10 billion deficit and turned it into a 100 billion deficit. Do your research before making slanderous statements snowman.

    • What does “broke the economy mean”? If it’s the government books then tax cuts will make it worse.

    • The only thing broken is your memory, the Key government increased government debt, sold public assets and left the other public assets worn out. Labour dealt with COVID in a responsible manner, built a substantial number of state houses, they could have made a big improvement in the ability to build housing except that National did their typical backwards action and reneged on an agreement they had made.

  5. Just wait until Willis clambers aboard the wrecking ball in bloomers and corset once she’s fabricated enough fat to feed the crony cats – that’s when the real ugly stuff starts, and once she starts she won’t be able to control herself.
    She’ll take sausage into hole ramming on the populace to a whole new unlevel playing field.

  6. Conservatives are complaining that Labour left them in debt and so on and so on – the usual. But the books were opened for them long before the election, and they still went ahead with this stupid tax cuts. Which they are now saying are for middle to lower income people. I somehow doubt that. Or rather I distrust their definition of middle.

  8. The woke middle class gave us the current government. Why are they surprised at the creation.

    • The woke middle class also gave us the current Greens. Hopefully the current Greens will all move on including Swarbrick leaving space open to people who aren’t distracted by identity ideology.

    • Because the woke middle class weren’t the ones paying for this lot of arseholes. That might sound terse but that’s the most appropriate description.

      Now we have a’holes Luxon and Seymour trying to convince us that dolphins might be killed driving to work. I mean wtf are these morons on about. They are now trying to find mileage out of the somewhat stupid decision to race in a marine reserve at the wrong time of the year. Is there nowhere else to host a boat race?

  9. Waikato-Tainui’s 2014 report says the Raupatu Land Trust had a net profit of $70.9-million, distributed $6.1-million, claimed a net worth of $783.7-million, and paid income tax of $342,000. – 0.4% tax

    Te Runanga o Ngai Tahu’s 2013 report listed a net operating surplus (profit) of $50.86 million, distributed $17.3 million, claimed a net worth of $877.26 million, and paid just $160,000 in tax. – 0.3% tax.

    ‘Māori’ own a significant proportion of assets in the primary sectors: 50% of the fishing quota, 40% of forestry, 30% in lamb production, 30% in sheep and beef production, 10% in dairy production and 10% in kiwifruit production.

    Given the tax advantages they have the Iwi part of the economy will continue to become an ever larger part of the economy, which will force the tax burden onto that more highly taxed part.

    Bet you lefties won’t do anything about these tax rates, eh?

    • What tax advantages are they? Are they as good as the god bothering rates? Like zero? Have a moan about that one.

  11. Cretinous Seymour was on TV declaring school meals were a tax burden, unfunded or words to that effect. It was clear he wants them gone. The news showed children happy to get lunch, probably also missing breakfast. No doubt Seymour will be happy to save the dollars, anti-Saint Ayn Rand and a constellation of Atlas devil’s smile up on him from Hell. I can only see him in these terms, there’s no other explanation for such malice to poor children.

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