Wednesday, 8 October 2008

National's tax move politically savvy

John Key and National's decision to "cut back" their prospective tax cuts, to be released today, is a great political move by the party, it gazumps any political mileage from Labour and makes National look fiscally prudent at a time where Labour and Micheal Cullen have managed New Zealand into a deep recession.

Having said that the move is practically stupid because in reality tax cuts stimulate economies and in a time of cut backs, any money in the economy spent by Darren and Karen six pack is much better than it being spent by Government departments.

The focus on lower income earners for tax breaks is also inherently unfair and stifles productivity and aspiration for those on lower incomes to earn more.

A dumb move overall in my not so humble opinion.     

c Political Animal 2008

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