1. SHANE JONES (Labour) Link to this
to the Minister of Finance
What was the cost of the business tax cuts that came into effect on 1 April this year?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
The total cost of these tax cuts is over $1.1 billion over 4 years. This represents the largest cut to business taxes since the late 1980s. There were no significant cuts to business taxes in the 1990s.
Hon Dr MICHAEL CULLEN Link to this
I have seen a report stating: “No, no, no, Labour has not reduced a single tax in 7 years.” Dismissing over $1 billion in tax cuts in this way is rather remarkable for a former Governor of the Reserve Bank.
John KeyCan the Minister confirm that tomorrow the Government will be announcing a record surplus—a surplus that, after accounting changes, will be in excess of $10 billion—and, having now produced surpluses of over $20 billion in the last 3 years alone, can he understand why the public of New Zealand are getting fed up with his excuses for not delivering tax cuts?
Hon Dr MICHAEL CULLEN Link to this
The member, who has spent much of the last 2 weeks boasting overseas that he will be the next leader of the National Party, has forgotten that his own leader, only last Friday, talked about incremental tax changes.
Rt Hon Winston Peters Link to this
Does the Minister of Finance remember the Budget of 1998, when $1.1 billion of personal taxes were part of that Budget, and does he recall that it was not a National but a New Zealand First Treasurer who did that?
Hon Dr MICHAEL CULLEN Link to this
I well recall that fact. I also remember that in 1999 a National Government, without New Zealand First, legislated for tax cuts, then had to cut New Zealand superannuation to pay for them.