Nicola Willis says she isn’t borrowing for tax cuts and has staked her job on delivering meaningful tax cuts alongside a cut in public spending to afford the $2.9billion Landlord tax break.
She will need to borrow about $15Billion.
Her tax cuts are about $15Billion.
The markets will react once the budget is out with Liz Truss level speed if the numbers are really this cooked.
Treasury is making it very clear that the Government must look to increase revenue to avoid a real bubble over in the markets.
Their advice is an inheritance tax, a Capital Gains Tax – OR raise GST.
Of the 3, only raising GST is politically palatable to National.
A CGT and inheritance tax would damage the real estate pimps who own them, where as a rise in GST would hurt those that National voters despise the most – the poor.
Key raised GST with no election mandate in 2010 from 12.5% to 15%, it is absolutely possible for Nicola to give a pittance in tax cuts on one hand and with the other raise GST to ensure the markets see more revenue coming in and dampen down the borrowing for tax cuts trap waiting for her.
Treasury have advised it and Nicola has suggested more revenue sources but has been coy what those will be.
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The direct result of a corrupt National government.
GST impacts on the poor more than upon the rich, so raising it fits the Nats dirty little ethos.
Houses are a technology. On its own, it’s not going to change anything. Technology, it doesn’t really change anything. 15 billion in tax cuts isn’t really going to move the trillion dollar NZ property market. Technology and tax cuts and budget cuts isn’t going to change the rules of the game.
But if you recognise that the business model has to change then you can go against the monoliths that control poverty in New Zealand and then you can change the rules of the game by giving first home buyers 600,000 dollar government backed home loans upfront.
We could dump a million houses on New Zealand right now but its not really going to do much for first home buyers so we rewrite the rules of the game and give everyone 600k loans so no one has to pass go.
So when the working poor whom the banks wouldnt loan anything to they get loans they wouldnt even know what to do with. The poor people wont know what to do with those loans or how they can change the game with it.
We cant helpnthe the poor all we can do is give them an opportunity to get envolved and learn about how they can level the playing field through work. It has to be that the harder these people work, the better the housing gets. Better food. Better cloths and better holidays.
At the end of the day its the same story for genz, the same story for geny and genx and the bommers. Its the same story as before artificially running water, before steam and its knowledge.
Knowledge is always what is going to make a difference Knowledge and drive combined.
Increasing GST will drive up prices. thus may result in higher interest rates.
Both of which will place further downward pressure on overall sales, thus GDP
Hurting both consumers and businesses while potentially lowering the overall tax take as a result
I think ever the right would riot if they tried.
That would be typical of these idiots. Put up fees, public transport, and GST and then give a meaningless tax cut. They have essentially been lying and saying we are over taxed while Treasury has been saying the opposite.
The government books are unbalanced due to Robertsons reasonable largesse to save every business, landlord and bank during covid.
About $10,000 per man woman and child was borrowed and pumped into the economy. Where is that money now?
If you didn’t finish covid with an extra $10,000 in your bank account, the covid money didn’t go to you.
$50billion went some group in society it needs to be tax recouped from them.
Treasury please advise who ended up with the $50billion?
The Taxpayer Union took a fair chunk of it.
They paid it back.
Just another reason for the record numbers of kiwis flocking to Aussie.
“… record numbers of Kiwis flocking to Australia” and being replaced by citizens from the Indian sub- continent and its neighbours, the Horn of Africa, plus, of course, Chinese, Filipino nurses, and seasonal Pacifica.
Perhaps privitizatising the state owned enterprises would be an alternative to GST rise or done in addition. It would also be taking a page from the John Key playbook as it would be finishing off what the Key government started when they half privatised electrical utility SOEs and Air NZ.
What’s left to buy Chris?
Capital gains and estate tax would build the credibility of the tax base. Raising GST is harder. Although the rich pay l lot of it, it impacts the poor.
Yes they will do it when they allow the anti treaty bill to go through .And while all the red necks are partying in the street GST will be 20% .When the red necks come down from their high they will go fuck me what just happened we got raped by a white bitch .
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