Everyday Money

Everyday we pay tax – in fact work for months to fill the government’s coffers before we get our share of our earnings. Most of us understand that we have to fund the services we enjoy, but the surplus the government has now is something else entirely – and the speciousness of those in charge in regards to this is incredible. Finance Minister Michael Cullen told a select committee last year that anyone advocating large tax cuts because large surpluses “should be taken out and quietly drowned.” Prime Minister Helen Clark has said “Tax cuts are a path to inequality…the promises of visionless and intellectually bankrupt people.”

You will be interested to know that in fact Treasury told Cullen in 2003 that “This healthy fiscal portion presents the government with scope to cut taxes, increase expenditure, and build up financial assets.”

Now with National snapping at their heels Labour have done an about face. Quite possibly too little too late methinks. I would like to see a one off tax refund to each taxpayer (it is our money after all) and a reversion to flat tax rates with possibly a moratorium for very low earners but I doubt we will see anything of the sort. And….while I am on the job no GST on fruit, vegetables, fish, meat, milk and bread!