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Friday Night Free For All

It's Friday. The budget is out, but Labour are still in. The talk is all about tax cuts, and the vote seems to be "it's not enough", or "I expected more". That's coming across as very greedy and self-centred. You can expect Labour to capiltalise on that, and National will have to be careful in the way they position their election promises.

Personally, I don't think people's intention here is about greed. The reality is, after nine years in power, with year on year tax surpluses, people have seen their own pay packet eroded by inflation and by "bracket creep". This inflation then hammers a whole segment of home owners on big mortgages, with interest rates way up. What many people realise is those interest rates were pushed higher by massive increases in government spending, as much as Bollard tried to blame the property market.

Even so, maybe that would be acceptable, if the Labour government looked like they cared. The reality is though there have been no adjustments in the tax thresholds in 9 years. When they came into power, they put all the taxes up. They've added or increased over 40 taxes since getting the pin number to the IRD accounts.

And Cullen has the cheek to call people on $60,000pa "rich pricks". Yes, the 60K tax margin will be increased to 70K. For the rich pricks. Charming. And reeking of arrogance.

People are simply looking for a fair deal -- and to see tax surpluses even after increased government spending, with Cullen saying "no relief" is just grating.

To make matters worse, we also seem to be going backwards in delivery of government services. Throw in government bungles in accounting (Kyoto for starters) and a series of high profile incidents of wasteful government spending (Te Wananga swallowed half a billion dollars alone), year after year, for 9 years, and then suddenly, on the eve on an election, Cullen and Labour throw out a bone, it's no surprise people are coming across as "greedy" as they digest the election bribe.

I suggest it is merely a reaction to the way we have been treated for 9 years, and it's taken a downturn in the economy for a large chunk of casual voters to suddenly get interested in seeing how the government is going to help them, given they've been helping the government so loyally for the last three elections.

Meanwhile, I, like many, are waiting for National to respond with something that is indeed far more than a discussion on tax cuts. To keep the conversation limited to tax would indicate a certain degree of greed and self-centredness. What voters need to hear is how a suite of economic policies will, as Rodney Hide often declares: "Make the cake bigger" rather than just arguing about how to divide the cake we have. In that environment, we can have our tax cuts and spend them too.

Drop in for a chat, it's Friday, and there are more things to talk about than just tax.