In the wake of Treasury’s HYEFU statement predicting a gradual economic recovery, recommendations from government task forces and business uncertainty around the future of New Zealand’s tax structure The National Government has announced plans to both lower and not lower taxes in the upcoming budget.
‘For purposes of revenue estimates, forecasts and government spending there will be no personal or corporate tax cuts next year,’ Finance Minister Bill English told reporters at a press conference. ‘Let us be very clear on that point. But having said that, there will be massive cuts to personal and corporate tax.’
Although the announcement was made by English, insiders point to Prime Minister John Key for the break through. ‘As Prime Minister I have taken a strong super-position on this issue,’ Key announced in a press release.
Senior National sources suggest that a similar solution to the Foreshore and Seabed issue will be introduced late next year, with ownership and customary rights both awarded and not awarded to iwi.
Labour has responded forcefully with two press releases; one from David Cunliffe supporting the proposal, the other from Shane Jones attacking it. A spokesperson for Phil Goff explained that the Labour leader simultaneously supports and opposes the new scheme.
It is understood that when Mr Goff is directly asked for his opinion he will collapse into a definite state.
The new policy is known within National Party circles as ‘the Copenhagen Interpretation’, so named because the Prime Minister was eating a Copenhagen ice-cream when he conceived of it early this morning while attending the COP15 talks in Denmark.