The Nats want us to believe there is no other option than massive cuts to government spending. Roughly, a third of the cuts covers the earthquake rebuilding, another third covers the Nats’ tax cuts for the rich, and the last third covers the revenue loss from this neverending recession. So, how come the Nats can afford another round of tax cuts for the rich?
Can income splitting be made to work? Funding people to stay at home with children isn’t such a bad idea…
The Government is set to announce income splitting. Effectively, it allows a taxpayer to assign part of their income for taxation purposes to their partner on a lower income, the transferred income will be taxed at a lower rate. This will benefit a select group: wealthy nuclear families, especially those with a stay at home parent. An unaffordable, unfair, unnecessary policy.
