Kiwi Polemicist

April 1, 2009

• Tax cuts aren’t a lottery win

Filed under: Tax — Tags: , , , , — Kiwi Polemicist @ 12:25 pm

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Today the government is dishing out dry crackers in the form of bite-sized tax cuts. The NZ Herald is portraying this as “Big Wednesday”, which is the brand name of a lottery. This is utter bunkum. Tax cuts aren’t a windfall, rather they can be viewed in one of two ways:

  1. The state is still stealing your money at gunpoint, but they’re now stealing a bit less
  2. The beneficent state is allowing you to keep a little more of what you have earned by the sweat of your brow

The National Party describes these tax cuts as “injecting an extra $1 billion into the economy in the coming year”, which is propaganda intended to make them sound like they’re doing some sort of economic magic. In fact all they’re doing is draining a bit less blood from the patient; that’s good, but a long way from magic.

Related post:

Graduated income tax, rates, and the Communist Manifesto (this explains why we have graduated taxes)

What do you think about the tax cuts and the portrayal of them as a lottery win and magic?

The National Party website has a plain-English summary of the tax cuts and their effects. The IRD has some more technical information.



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