The casino loses as Labour hits the jackpot

David Shearer has finally announced something that’s could be a “game changer” to use terminology from the election. According to the New Zealand Herald, Shearer announced in a speech this morning what Labour policy might look like in taxation, welfare and education and I must admit, I’m impressed.

From the NZ Herald article, the main points were:

  • Capital Gains Tax to stay as Labour policy, which Shearer called “pro-growth”
  • No $5000 tax-free zone
  • A more hardline welfare policy (seemingly similar to National’s policy announced recently?)
  • More investment in education, as “everything else is bottom of the cliff stuff”

Unfortunately, you have to assume that a Capital Gains Tax would be in the same form as Phil Goff announced before the election. I’ve said before that I am a fan of a Capital Gains Tax, but I really don’t think that form will work.

I haven’t posted about my thoughts on the $5000 tax free zone. I’m a fan of it, given it puts a large percentage of income back into the pockets of low income families. Having said that, I support dramatically lowering income tax and replacing that with a 20-25% GST rate. I believe that would result in everyone paying less tax, as it’s much more difficult to evade. But that is a topic for another day. I do support the $5000 tax free zone, however I don’t think it’s something New Zealanders are in support of, so it’s not a bad idea to drop it. Not exactly a deal-breaking policy for me.

The NZ Herald article was quite vague as to what a more hardline welfare policy means, I assume that means Shearer was vague too. Though, what was said was people should be contributing to the work force if they can. Seems to me that’s quite similar to National’s welfare policy…

There’s not really a huge amount to say about investment in education. If you teach children well, the contribute to society well as adults (generally). It’s investment in the future of your country.

So that’s my take on what Shearer has said. So far, I like it. If this keeps up, I might be voting Labour in 2014.

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About Daniel Farrell

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Posted on March 15, 2012, in New Zealand Politics and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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