But since Labour announced the proposal, its poll lead has collapsed, the economy has come out of recession, its summer of sleaze campaign has failed to make a dent in the Prime Minister's standing - and the Rogernomes of the Labour Party have finally come to their senses and began challenging the left-wing dominance of the party. By increasing the top tax rate, an extra $320 million could be netted to spend on social policies - an area which presented difficulties given the effect of the Asian Crisis on the country's fiscal position. ![]() Deeply unpopular with corporates, the self-employed and aspiring professionals, the plan to increase the top personal income tax rate to 39 cents from 33 cents in the dollar on earnings above $60,000 was formulated late last year during the foreplay stage of Labour's unfortunate courtship of the Alliance. The political strategy has been devised to counter the resistance Labour is finding within business to its success tax plans. ![]() Under such a scenario, Labour could go into the election on its current tax- and-spend platform, later abandon its proposal to hike the top marginal income tax rate on those earning more than $60,000, and disguise the about-face as a response to an independent body's recommendations for sweeping moves to reorganise the tax base. On taking power, Labour would get outside players - such as a commission or task force - to scrutinise the current tax system and examine the best tax policies to ensure New Zealand remains an attractive place to do business and grow employment. ![]() By Fran O'Sullivan Labour's power brokers have devised a political strategy which will enable it to jettison its no-brainer plans for a success tax - if it wins power at the November election.
0 Comments
Leave a Reply. |