Goff throws tax counter-punch before fight

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Sat, 24 Apr 2010 5:27p.m.

Labour leader Phil Goff has warned the wealthy he's got next month's planned income tax cut in his sights

Labour leader Phil Goff has warned the wealthy he's got next month's planned income tax cut in his sights

By Jane Luscombe

Labour leader Phil Goff has warned the wealthy he's got next month's planned income tax cut in his sights – National is lining up a treat for the top earners.

But Mr Goff told TV3's The Nation if he is elected, he would turn the tax cuts around to help everyone else.

It has not even happened yet and the Labour leader is already limbering up to counter attack.

It's no secret that National are eyeing up a cut in the top income tax rate in next month's budget; the best guess says it'll go from 38 cents to 33 cents.

But it won't stay that way if Phil Goff ever becomes prime minister.

“Thirty-eight, I'm very comfortable with and I see no reason to cut the top tax rate below that.”

Victoria University's Working Tax Group does.

It recommends cuts in personal income tax across the board, including the top rate.

And the reasons?

OECD countries have dropped the top rate to remain internationally competitive for 26 years.

New Zealand’s kicks in at a relatively low income of $70,000.

Not only that, New Zealand competes with other non-OECD countries already on a lower rate.

But the Tax Working Group says the advantages of a high top tax rate are not as great as people think and there are fairer systems that are also better for the economy.

They recommend increased taxes on property – and on what we spend – through GST, because that's one tax the wealthy can't dodge.

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Comments

27 Apr 2010 12:52p.m.

Clarke wrote:

PiddleD***le - oh sorry IckleBickle, You really our a sour person aren't you?. You have not come up with anything constructive to say over this article. You have only thought it best to single out people that you deem better off than most. Is this because you are jealous in some way that you haven't managed to make anything of yourself while others around you have? Or is that too much of a generalization obtained by your comments you have posted. I agree with you Kiwi with your statement 'Those less fortunate than I aren't my responsibility, just as I am not the responsibility of those with more than I' The country needs higher wage earners to have more expendable income via a lower top tax rate. This way they spend more which goes back into the economy. More money into the economy boosts the economy thus increasing the probability of you IckleBickle getting a pay rise. But wait that may just put you closer to that higher tax bracket and if so I don't think you would be singing the same tune. A rise in GST is the way to go it's a user pays system. If you want your big 52inch TV and have the expendable income to purchase it you pay more in GST simple. If you don’t have the money to buy it, DON’T buy it!

26 Apr 2010 07:08p.m.

Kiwi wrote:

Your really funny ickle, but all your efforts to try and goad me are worthless. You can claim I make personal attacks all you want but everyone can see here your the only one thats done so. Feel free to shoot yourself in the foot again though, I enjoy a good laugh.

26 Apr 2010 11:34a.m.

David wrote:

@ IckleBickle, your personal comments are getting very tiresome - try commenting on actual article you attach your comments to. I for one am not interested in the asides to individuals unrelated to the topic.
As to the topic at hand, answer in two words FLAT TAX.

26 Apr 2010 07:54a.m.

IckleBickle wrote:

Just doing the same thing that you have done to posters here over and over and over again kiwi.. it isnt hard for people to know what you are really like.

They just have to read some of the political stories that you have posted on.

Jibes, insults.. these are things you use all the time, because you consider yourself better than everyone else.

The reality though, is you are worse.

And yes I guess I always target arrogant tossers... my bad.

26 Apr 2010 04:51a.m.

Jan.. wrote:

Say the high rate tax payer pays 40% tax and only asking for 5% back and has left you with 35% tax and that is heaps..
The way things are in this country, the high tax payers are moving to work in Australia and only pay NZ' say $1000 tax yealry and most should think themselves lucky to received such huge percentage..

25 Apr 2010 10:16p.m.

Kiwi wrote:

Working for families, yeah right... When they brought that in I ended up with a $3,000 tax bill at the end of the first year because IRD underestimated my income. I would much rather have a tax cut than pay someone to give me back my own money minus their cut. Yes I am better of than a lot of people, there are a lot more better off than I. You don't hear me whining and complaining about how come they have it and I don't. Those less fortunate than I aren't my responsibility, just as I am not the responsibility of those with more than I. As for my wife, yes it would be much better off if she had worked but our kids are too valuable to let someone else raise them. Now our daughter is 4 1/2 she has just got a job doing 6 hours a week. What she makes though will likely cut back on any working for families we might be entitled too so we don't really gain anything other than not having to wait an entire year before we get the money. Once again you compare my income to someone else's, so what? There are people in Africa and India who are far worse off than the lowest income earner in this country. Look hard enough and I dare say you can find someone worse than they. Its called life and no-one said it was fair. And finally you revert to your childish attempts at jibes and insults? Do you not realise that shows what kind of a person you really are?

25 Apr 2010 07:39p.m.

Dave II wrote:

What a sad bunch of posts from everyone who is just guessing at outcomes. A welfare state where no one wants to pay but everyone wants to receive.

25 Apr 2010 06:32p.m.

James wrote:

National is cutting taxes for the rich whilst increasing costs for physio therapy, denying people the benefit and cutting services at hospitals. During all of this they are saying that public service positions need to be cut as well, because we don't seem to have the money. Why is a service such as Radio New zealand, which provides accurate in depth broadcasting, having it's budget frozen when the government considers cutting taxes for those who are already very well off? To Brian the rich do not spend more if they have more money. The poor actually spend more if they are given more money because they have to.

25 Apr 2010 04:58p.m.

brian wrote:

Joseph, I'm a pensioner too, difference is I own my own home, not a quirk of fate but the result of always living within my means AND SAVING. Never had HP, always paid off my credit card in full on the due date, never drawn any other sort of benefit even although I have had periods (being the worlds worst employee) of being out of work. No, I've never had any handouts (other than 112 Quid when I turned 21, my 18th share of my grandfathers estate) which I immediately squandered on upgrading my car. Life is hard but for those who try hard too, quite just. I'm now enjoying life, yes, I'm paying rates, insurance etc AND I'm surviving, AND HAPPY, in fact enjoying my favourite tipple fight now, a single malt. And I can bet the "extras" I'm paying is far more than the small increase in rent you say you are suffering, WHY? A very good question, unfortunately you don't want to know the answer. Just go on voting for the nobodies who is quite adept at "promises" but so short on delivery, thankfully, otherwise the last out of NZ certainly won't know how to turn off the lights.

25 Apr 2010 04:08p.m.

Joseph wrote:

Lightseed, I am a pensioner.. National are going to raise the pension by 2.5 yes?.

Well this is what will happen for me, I will get my 2.5 percent increase... Housing NZ will take 25 percent of that increase... every time the pension goes up... so does my rent.

So really, I will be getting about a 2 percent increase... what Key promised is that no one will be worse off... well thats a lie.. sorry but when you have Housing NZ taking 1/4 of your increase you arent getting fair compensation.. I will be about .5 percent short of fair compensation.

I know what increase is happening to my pension already as it has been confirmed.. so it has also been confirmed that Key has lied.