tax cuts for the richer
The Government is to cut taxes for the election. It wants to believe that tax cuts will decrease Government income so that people have more in their pockets to spend. I refuse to believe that any tax cut from this Labour Government will mean I am better off.
Thats because tax cuts averaging $18.00 are to be offset by an increase in petrol prices and power bills.The average household spends $31.50 a week on electricity, $3.60 on gas and $42 a week on transport fuels , so a third of the tax cuts will be eaten up by extra cotss. For our family it will be more than two thirds.
Our family spends more on elecricity and petrol, so the price increases will hit us harder - but our tax cut will be less due to our income. So the tax cuts will make us comparatively worse off than the average household. And when I want to register the car it will cost us $50.00 more due to recently increased ACC levies. If my insurance premium increased 24 percent I`d shop elsewhere. But with ACC I`m not allowed to.
So of course we`ll be worse off.