Oh dear…
‘The maths is pretty simple’: Scrutiny on Govt tax cut and borrowing plans
A leading economist says the Government is “being cute” about saying it is not borrowing for tax cuts, while another agrees, saying “it’s not hard maths to work out”.
Finance Minister Nicola Willis has repeatedly said the Government will not borrow to fund tax cuts, the size and scale of which are also yet to be confirmed. She has also said tax cuts would be funded from “reprioritisations” – including cuts to the public sector.
She repeated the comments today in a Finance and Expenditure select committee, saying: “We won’t be borrowing extra to pay for tax relief and it won’t add to inflationary pressures.”
Labour finance spokesperson Barbara Edmonds asked if the Government would “be borrowing at all” in its Budget, which will be delivered on May 30.
Willis said the books left by the outgoing, Labour-led Government required borrowing “simply to meet day-to-day costs”.
“So that is borrowing. Yes.”
…so we are cutting back on food for hungry children, throwing beneficiaries off welfare and gutting public transport to fund a $2.9billion tax break for the richest landlords while borrowing for tax cuts we can’t afford?
And we elected this because everyone was spastic with rage that Jacinda saved 20 000 from Covid???
We are a very easily manipulated and very stupid people.
By electing this Government you have enabled the rich to fuck over the poor and are pretending this right wing revenge fantasy rampage is normal democracy.
Now your tax cuts are being borrowed but you’ll pretend that’s ok because you are all now so emotionally invested in this hateful Government you can’t back down now.
Right wing ‘feelings’ are what is deciding economic policy, social policy and climate change policy now.
Fuck your feelings.
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They are not only proving to be every bit as incompetent as the last lot, they have the added feature of being complete bullshitters ( with Jones and Costello throwing in a touch of bought and paid for). There seems to be little challenge when Luxon and Willis share unsubstantiated or flat out wrong comments about the economy. Again if things are so bad with the government books there is no way you be giving tax cuts. They have had to keep the campaign trail lies going because their numbers that didn’t add up then, don’t now. They are essentially borrowing to give to their mates.
Good summary, Wheel.
Lot of sense but if the last lot were so incompetent, how come standard and Poors gave NZ economy an AAA rating with unemployment so low?
I would suggest their failure to tax the rich leaving the Government with a shortfall leading to cuts (which National have expanded) while also leaving the Reserve Bank with no option but to increase interest rates (unnecessarily putting the country into recession) is one example of their incompetence.
Additionally, their policy failures such as Kiwisaver are another example.
Kiwibuild not Kiwisaver
The current Government and their supporters continue the lie, claiming that the Labour Government caused the recession. I prefer to follow the opinion of financial experts. Economist Shamubeel Eaqub recently advised that Labour is not to blame for the recession, and that New Zealand’s debt levels are low by international comparisons. Eaqub advised that investing in infrastructure programmes, rather than tax cuts, would be far more beneficial for NZ’s economy.
https://www.rnz.co.nz/national/programmes/morningreport/audio/2018931201/more-pain-before-economy-picks-up-says-economist
Obviously tax cuts require cuts to public services and jobs, as we are seeing. This will have compounding detrimental impacts on many NZers, mostly on the vulnerable sectors of our society.
Further evidence follows, which shows that Labour managed the economy very well.
“Friday, 8 September 2023: Standard and Poor’s is the latest independent credit rating agency to endorse the Government’s economic management in the face of a deteriorating global economy.
S&P affirmed New Zealand’s long term local currency rating at AAA and foreign currency rating at AA+ with a stable outlook. It follows Fitch affirming New Zealand’s AA+ rating with a stable outlook and Moody’s annual credit analysis affirming a stable outlook on New Zealand’s local currency and foreign currency ratings at Aaa”. https://www.scoop.co.nz/stories/PA2309/S00048/new-zealand-gets-aaa-credit-rating-from-s-p.htm
Despite leading economists explaining prior to the election that National’s planned tax cuts would be unaffordable, many voters were wilfully taken in by National’s promises and did not want to listen to fact. They are now facing the consequences. Huge donations assisted National with a relentless attack campaign against Labour. National, ACT and NZ First also appealed to many people’s deep-seated racism, by falsely claiming that Labour’s policies advantaged Maori at the expense of other NZers.
Willis is overblown with arrogance and self-importance, and seems to believe she is more knowledgeable than financial experts.
From your link, Vienne.
Shamubeel Eaquab says the decline began in September 2022.
Good point Rodel…
The last Government were not incompetent at all considering the continuous stream of unprecedented events that were thrown at them…
Each event ie.
1 in 100 year worldwide pandemic- Covid.
I in100 year flooding event in Nelson region
1 in 100 year flooding event x 3 in Westport
1 in 100 year flooding event in
Auckland
I in 100 year flooding and slash event in East Cape / Esk Valley
Deadly Bovis outbreak event
Left to rebuild a terrible unprecented housing situation left by National
The list goes on and on
The expense and skill required to deal with all that was extraordinary…
N.Z should be grateful that Labour were in power when all this unfolded, because this current ‘Coalition of Chaos’ is actually the new 1 in 100 year disaster!
Can you imagine , if you can bare the thought for just 1 second, what a clusterfuck they would have made of those extraordinary 6 years..
Think…trainwreck!!!
Bois
1 in 100
1 in 100 year worldwide pandemic (Covid) resulted in Labour dividing the nation and a massive transfer of wealth to the rich.
Over a year on from rain events homeowners still waiting to get back into their homes or receive pay-out.
Deadly Bovis outbreak event gets an open checkbook while nurses teachers and those in poverty get told there is no more money
why are the taxpayer recompensing those who made ‘bad decisions’ isn’t that the rightwing mantra when talking about the poor chairman
Thanks Grant, while the revolving door of cabinet ministers stuffed their credibility they still handled the situations you mentioned far better than this current government could have.
Fair enough point. I meant more from the 3 waters, leaving CGT out thereby continuing with a lopsided tax system, housing, point of view.
This lot think job losses are awesome. Why doesn’t that idiot Upston join the drain she mentioned. We obviously have to leave out the ‘brain’ reference but she’s welcome to sod off.
Rodel
Emergency housing demand on the increase.
Record crowds at foodbanks
Large numbers struggling to pay power bills
People struggling to pay rates and insurance
Yet, unemployment was so low
Wheel your understanding of economics is dreadful given you are fiscally illiterate,something you demonstrate often.
Pearls of wisdom from a polished turd in a blue and yellow raincoat…..
I saw a turd Bob about excitedly once, then it just floated about making a stink
Was it in a blue and yellow raincoat?
Nah it was more like a blue helmet with yellow streaks
nah clive grey baggy undies with skiddies
More like a blue helmet with yellow streaks
Heavens above my fan base ever expanding thank you Derek and Clive I shall keep an eye out for you.
Best to keep your eye in makes winking easier
This coming from an individual who seemingly had no idea why it was odd that, as Nicola stood shrieking about the shocking state of the governments books, government bond yields decreased. But don’t take it from me Bob, people way more conservative than you think your hero’s in the coalition are completely wrong about their numbers…..because they are.
Bond yields have been good of late.
Bob’s idea of economics is when he opens his lolly bag and says he hasn’t enough marbles. You get that with under 5 year olds.
Who cares. We will get sensible firearms laws though.
(Eyeroll) There is nothing sensible about putting into the community a greater number of dangerous devices designed to kill human beings.
Nothing.
Nothing at all.
You know that the gun buy back payouts were used to buy more firearms don’t you Richard?
Over $100 million tax dollars to buy new guns!
Our firearm laws are pretty good right now. Contrary to what Nicole McKee will tell you, there is nothing to be gained from her proposals.
Really? Shootings at school rugby, tangis, not to mention the surge in general gun crime & gang shootings. Sure, everyone is safer now!
Really? Not according to the news.
Really?
Really, have you seen the news lately?
Been to school boy rugby?
Or a tangi?
Safe as! Well no one died.
From the shots anyway.
Has McKee resigned?
She’s going to deliver.
Nah she didn’t deliver she had a dump and it was a fizzer
She has delivered and goes by the name Fizzer…
Groceries Erik, that’s her new job, delivering groceries.
Who cares? Gangs, school shooters, gun city. Lovn’it.
Total madAct.
Regarding your picture, we will probably see the end of the British Monarchy in its current form within the next 10 years. It’s seriously crumbling now.
Regarding your picture, we will probably see the end of the Act NZ 1st coalition in its current form within the next few months. It’s seriously crumbling now.
” We are a very easily manipulated and very stupid people. ”
YES !
Had the population had a backbone , a little less selfishness and some intelligence we wouldn’t be where we are now.
The embarrassing , awful realisation that we never learn from the consistent destruction of governments like this one lends weight to the statement above.
But we’re entitled to these cuts.
If the cuts are paid for by Govt borrowing then you will pay for the cuts + interest ….
Its like withdrawing cash on your credit card and saying ‘but I’m entitled to that income’
… and it’s a fine example of the ‘voodoo economics’ that NActFirst operate by…..
Paying the money back will be another excuse for austerity and privitisation ,,,, which is what they want to do in the first place.
They won’t be paying it back, they will leave it to the next government to pay it back. Like they always do.
Will they also be borrowing to fund their pay increase if approved?
The government stands there lying through their teeth on a daily basis. We know they have no answers when all they can do is rail against the last government. Nicola Willis is an absolutely awful individual. I always knew she was awful but her awfulness beats awfulness. She is cringe worthy awful. I love the way Barbara Edmonds gets Willis going because Willis has no answers she tries to teach a financial expert Barbara how to be a financial expert, if it wasn’t so awful it would be hilarious, Barbara winds her up like a clock and gets her going every time. However the sad thing is Willis thinks she is so clever but at the end of the day she is just pathetically awful.
Fell sorry for Willis kids they will become truants big time Who would want to go to school and admit that is your mother .
Fell sorry for Willis kids they will become truants big time Who would want to go to school and admit that is your mother .
So NZ government is now on a par with the Suharto regime – indebting the country to enrich family and sycophants. We used to be a 2nd world country – Due to inferior governance, we are no longer.
I love their front during that time. I suppose the fat folk wanted a change no matter what. The Nat’s undies now overall are down by their ankles.
after he’s sacked off luxton will have a new role in the mr blobby remake