April, 2004
CTU Economic Bulletin No. 47
Submitted by EditorNews on 30 April, 2004 - 00:00.April, 2004
Comment
The Budget on 27th May promises to deliver a significant boost to those on low incomes with a new package worth at least $1 billion a year. The Government is aiming in this package for a trifecta - helping those on low incomes, increasing labour market participation, and stimulating the economy next year at a time that a slowdown is predicted. The Government has already said that the Budget will "significantly increase direct income support and incentives to move from welfare benefits into paid employment, and will make housing more affordable for low income families and single adults". But many details are not known - the exact overall size of the package, phasing-in, childcare support, accommodation allowance, the linkage to employment etc. What we do know however is that the December Economic and Fiscal Update showed new spending of $13.3 billion over the next 3 years from July 2004. This is double the provision in the 2003 Budget which was for $6.6 billion new spending over 3 years. I am sure there will be a lot of debate about the nature and details of the package. What is clear though is that it represents a stark contrast to the National Party in the 1990s which amassed Budget surpluses which were then given in tax cuts favouring those on high incomes.
CTU Economic Bulletin No. 46
Submitted by EditorNews on 1 April, 2004 - 00:00.March, 2004
Comment
A puzzle. Why does Don Brash use Australia as an example of why New Zealand should deregulate and lower taxes? It doesn't seem to strengthen his case one bit. The top tax rate in Australia is 47% compared with 39% here. Their next tax rate below that is 42% which is still higher than our top tax rate. On top of this they pay a medicare levy of another 1.5%. The company tax rate is 30% in Australia but they also have payroll taxes, which vary from 3.65% to 6.85%. Their equivalent of ACC charges is also at 2.47% which is higher than in New Zealand.