1. CHARLES CHAUVEL (Labour) Link to this
to the Minister of Finance
Has he received any reports suggesting that he abandon his four tests for tax cuts?
Hon Dr MICHAEL CULLEN (Minister of Finance) Link to this
Yes, one from Mr John Key, who has suggested that the four tests cannot be met and therefore should be abandoned.
Hon Bill EnglishCan the Minister confirm that his four tests are completely irrelevant, given that the Prime Minister has announced three times that there will be tax cuts, and he announced again today, just half an hour ago, that there will be tax cuts?
Hon Dr MICHAEL CULLEN Link to this
I think the Prime Minister and I have both, in a synchronised fashion, announced on many occasions that there will be tax cuts. But, of course, the interesting question for Mr Key is which of the following he thinks tax cuts should achieve: greater inequality, reduced social services, increased borrowing, or increased inflation. Again, he looks down, as he spent much of yesterday looking down.
Gordon CopelandDid the Minister’s four tests have anything to do with his reneging in Budget 2007 on the tax cuts through bracket adjustments he had promised in 2005, or was it just—as he said at the time—because New Zealand taxpayers did not express sufficient gratitude to him when he decided in 2005 to reduce their tax burden?
Hon Dr MICHAEL CULLEN Link to this
I do not think the phrase “chewing gum tax cuts” came from New Zealand taxpayers at large. I remember where that particular phrase came from. However, that had nothing to do with the ongoing programme we will be announcing in the Budget. It will be interesting to see whether the National Party votes for those tax cuts. It has voted against every other tax cut this Government has introduced.
Can the Minister explain why he has argued for 8 years that no tax cut could meet those tests, and why he has suddenly discovered, in election year, that tax cuts can meet all of them?
Hon Dr MICHAEL CULLEN Link to this
The member is wonderful at making up a fact, asking a question about it, and then sitting down and looking very pleased with himself about it. What I will not do is what that member did—cut taxes, and then cut New Zealand superannuation to pay for it.
Sue MoroneyHow does the announcement of a programme of personal tax cuts fit with previous decisions around taxation made by this Government?
Hon Dr MICHAEL CULLEN Link to this
That programme will build upon and complement the $4.5 billion a year of tax cuts already introduced for families, savers, and business. I point out yet again that, firstly, National voted against every one of those tax cuts; and, secondly, as far back as I can go in history, National has never voted for a cut to the business tax rate—only Labour Governments have done that.
Rt Hon Winston Peters Link to this
Can the Minister remember when there were “Swiss chocolate” tax cuts without any cuts for public investment in education, health, and other areas, such as in 1998 when there was a $1.1 billion series of tax cuts, and who the Treasurer was who did that?
Hon Dr MICHAEL CULLEN Link to this
I do recollect some tax cuts in that period and I do recollect Mr Peters having something to do with them. But then I also recollect the National Government turning around and cutting New Zealand superannuation as a consequence.