Wednesday, June 25, 2014

A less progressive Labour

Labour released its fiscal policy today. The headline policies? Paying down debt faster than National, and a top tax bracket of 36% on those earning over $150,000. But before everyone starts praising Labour for "restoring progressivity to the tax system", lets remember: back in 2011 they promised that that tax on high earners would be 39%. So, they're promising a less progressive tax system today than they were three years ago. As for the intended uses of this extra revenue, they're promising that they will

Create fiscal headroom to allow the option of income tax reductions in the second term

Yes, that's right, faced with a mountain of debt and gutted social services, Labour is promising tax cuts. And this is supposed to inspire people who have given up on democracy because all the parties work for the rich to turn out and vote for them? I don't think so.