Key’s Tax Cut Reassurance
November 13, 2008 New Zealand Taxation
John Key has sent out reassurance that the planned National Party tax cuts are going to be affordable and timely for New Zealand.
In the face of the apparently grim Treasury report received by John Key and his incoming Minister of Finance, Bill English, remained optimistic and stood behind the proposed tax cut policy of the National Party. While neither man was willing to comment on the exact figures and information provided by the Treasury, they did concede that the situation was less than perfect. John Key went on to say that the tax cuts were affordable and according to the information provided, could not come at a better time for New Zealand. It is expected that the exact details of the discussion and its effect on personal tax cuts will be detailed in the new government’s bi-annual economic forecast.
The discussion between the incoming and outgoing government figures is thought to have centered largely around the Treasury update released the day before the November 8th election. The report predicts lower commodity prices and falling house values, inline with other economic predictions. The report predicts a growth rate of 1.3% until 2010 and unemployment rising to as high as 5.7%. Despite this John Key was quoted as saying that while the Treasury was pessimistic it was not Armageddon.