Tax Cut Faces Delays
May 11, 2009 New Zealand Taxation
The 2010-2011 eleven National Party promised personal tax cuts could be faced with a delay.
In an interview with Newstalk ZB, New Zealand Prime Minister John Key stated that the idea o cancelling the upcoming promised tax cuts would certainly not be an idea that he would support, although the option of delaying the cuts would be acceptable to him.
It seems from John Key’s comments that much effort was expanded in either keeping the level of funding for entitlements equal or even raised. Combined with the rising budget deficits, lowering trade surpluses and the seeming preferences of New Zealand of not accepting tax cuts if they come at the cost of raised government borrowing, the room to maneuver for tax cuts seems diminishing. Subsequently it seems that the possibility of delayed tax cuts is looking to be more of a reality.