Thursday, November 17, 2005

The first test

The government's new, looser arrangements for Cabinet Collective Responsibility may face their first real test in Question Time today, with the following question:

GORDON COPELAND to the Minister of Revenue: Does he agree with Inland Revenue Department advice that, particularly in relation to the 33 percent and 39 percent personal tax rates, there is growing evidence of income splitting within families who are self-employed and that this leads to perceptions of unfairness in the tax system?

The Minister of Revenue is of course Peter Dunne - an advocate of income splitting. But as Minister, he is bound to support the government's policy programme in this area, which does not yet include income splitting. It will be interesting to see how he answers it...