How much is enough?

Tracy Watkins thinks John Key is offering enough:

A year ago, Key might have risked over promising and under delivering on those amounts.

But that was a vastly different world..

The failure to deliver more may peel off some soft support among those who were leaning toward National but, because of Working for Families, will not be a whole lot better off.

But the rest will probably agree with Key that it’s a package that’s right for the times.

So is it enough? You’d have to say yes.

Colin Espiner says the tax plan is tailored for the times.

Herald commentators  aren’t impressed:

John Armstrong says families on low wages are not so well off with National but:

Overall, the tax package wins plaudits for being fiscally responsible. It won’t win big in electoral terms because of its generosity – someone on $80,000 only gets $6 a week more than they would from Labour’s package.

As for National’s plan for rescuing the (sinking) economy, there was nothing new today. We’re still waiting.

Audrey Young says:

National’s tax package does what it promised in some respects, doesn’t meet promises in other respects and offers some complete surprises.

One of the surprises was the promise of an independent earner rebate. . . .

. . . But the biggest concern will be National’s commitment to reverse what many see as protections in the KiwiSaver scheme that Labour recently passed.

They stopped a loophole allowing employers to effectively deny KiwiSaver employees pay increases on the basis that they have done deals on KiwiSaver contributions.

National sees this through different glasses, giving employers freedom to give non-KiwiSaver employees pay rises equivalent to their contribution increases to KiwiSaver employees.

Excepting one is pay rise for today, another is one you can cash in only at 65.

It is a recipe for exploitation and unfairness.

Brian Fallow says:

At first glance the big transfer of money in National’s tax package is from KiwiSaver accounts into people’s pockets.

In the short term that gives them more to spend at a time when private consumption is flatlining.

But you can’t have your cake and eat it.

. . . Other elements of the plan are also disappointing from the standpoint of lifting our long-term growth rate – less of an increase in infrastructure spending, and the scrapping of the research and development tax credit.

At least it does not make the rather grim fiscal outlook released by the Treasury any worse. But it is only marginally better.

 Inquiring Mind has done a round up of comments on the blogosphere, which covers a range of views, some of which as he puts it can charitably be described as a partisan perspective.

UPDATE: goNZofreakpower  and Dave Gee  weren’t on Inquiring Mind’s list but are also worth a look.

UPDATE 2: So is Liberty Scott.

2 Responses to How much is enough?

  1. adamsmith1922 says:

    I noted Fallow’s comment when I looked at the MSM, I am not sure he is correct on R&D, I was always very concerned about the nature of Fast Forward.

    If the major export sectors will not invest without a tax deduction, then we should be severely questioning them and the economics of why they are the major export industries.

    When Fast Forward was announced some of the areas identified for spend were not really desirable

    Many years ago, when I was an auditor the classification of some of these spend areas might well be described as elastic, so I am not too concerned on the tax allowance front.

    Where I am very concerned is that the annucement seemed more like a tax plan than an economic plan.

    Presently Labour and National have me very, very concerned on that score

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