Fantastic. Labour, in their zeal to jump on National's suggestion of selling a 20% share of some of the State Owned Assets, have made a blunder. They could have rabbited on about selling the silver and leaving it at that - but oh no, they had to go add: "This is how National will fund tax cuts".
So, the question is: Do Labour expect to offer any sort of tax relief? If they do, they have to fund it from somewhere apparently, and selling off a stake in an SOE is by implication, the only way of doing it. If they don't, they may have some pretty serious voter dissatisfaction on hands. All National have to do to offer tax cuts is increase the thresholds by a reasonable factor whilst watching Dr Cullen make announcements that the extra tax should go into tax payer funded subsidies of election expenses.
Related Link: Labour - SOE sale funds tax cuts
So, the question is: Do Labour expect to offer any sort of tax relief? If they do, they have to fund it from somewhere apparently, and selling off a stake in an SOE is by implication, the only way of doing it. If they don't, they may have some pretty serious voter dissatisfaction on hands. All National have to do to offer tax cuts is increase the thresholds by a reasonable factor whilst watching Dr Cullen make announcements that the extra tax should go into tax payer funded subsidies of election expenses.
Related Link: Labour - SOE sale funds tax cuts
Hah, well spotted Zen.
ReplyDeleteIts almost an admission from the govt that they have no monetary space at all, ie. we are close to the wall.
Kinda like the old hoary economics joke:
Economics teacher: "OK Johnny, if you have a dollar, and Mr Cullen gives you a tax return of one dollar, how much money do you have?"
Johnny: "One dollar"
Teacher: "Um, Johnny, you obviously don't understand maths at all".
Johnny:"You obviously don't understand Mr Cullen's economics!"