|Last Updated: Mar 25th, 2013 - 16:46:15
Thought for the Day
Cullenomics: Michael Cullen's new Laws of Economics:
Increasing taxes will not slow our growth rate.
Increasing state bureaucracy will not slow our growth rate.
Foreigners will not lend us money at our new high interest rates if we ask them nicely enough.
Students won't take all the free money offered to them.
These new laws of economics will take us up to the top half of the OECD by 2010.
Jan 25, 2006, 03:42
Cullen Confident About Our "Little Dip".
Here is the latest Michael Cullen Press Release:
Cullen Confident About Business Tax Changes
Finance Minister Michael Cullen reiterated today that the government is very focused on making meaningful changes to the business tax regime.
"This a complex task, but one that could pay real dividends for the economy," said Dr Cullen.
"For opposition finance spokesman John Key to suggest otherwise shows how ignorant he is of the realities of policy making. It's surprising for one who trumpets his business credentials so much to suggest there is a simple, quick fix available," said Dr Cullen. "Clearly he has a lot to learn.
"This government is concentrating on managing the country through any dip in economic activity.
"John Key's only solution seems to be to simply cut taxes which will only put further pressure on interest rates and the dollar thereby creating more pain for exporters and workers," Dr Cullen concluded.
The review of business tax is a key part of the post-election confidence and supply agreements with United Future and New Zealand First. It aims to provide better incentives for productivity gains and for businesses to improve their competitiveness with Australia.
Proposals for consultation will be released by mid-June at the latest.
It seems that Michael is keen to berate John Key for advocating tax cuts while offering to review taxes to find greater incentives for business people. It will be interesting to see how the review can provide business incentives with tax increases!
It is also a pity that Michael and Helen only seem to be getting the point about running an economy after things begin to turn to custard. The most worrying thing I see is that Helen feels the need to come on to the News and tell us that, "it is only a small dip". (No doubt caused by a small dip-stick.)
The Economist regards the US economy as "under stress" and various economists are concerned about its fragility. Our little economy is currently under even greater stress and we do not have the resources of a country like the USA to keep things on an even keel. We need all our politicians to get some basic economic understanding so that they can do the right thing now to grow the economy 5 to 10 years out. It certainly wasn't John Key's legislation and regulation that has shaped our economy to this point.
Michael should have been planning to avoid this "little dip" from when he started in 1999. It is too late now!
Jan 26, 2006, 10:26
The Mess Greenspan Leaves
Alan Greenspan the Federal Reserve Chairman for the USA is retiring today and it is interesting to read opinions other than from the popular press.
Greenspan's legacy is one of major imbalances in the US economy and these are rather similar to the problems we face in New Zealand - huge trade deficit, housing boom and consumers spending more than they are earning. We could see a major correction in the US and this would then have considerable effect on the rest of the world's economies.
They used to say, "What's good for General Motors is good for the United States". Well, General Motors' bonds are now accorded "junk" status and both GM and Ford could move into bankruptcy in the near future. This will not be good for the New Zealand economy.
Stefan concludes, "The enduring legacy of the Greenspan era will be the large-scale confiscations of wealth and economic imbalances — all of it blamed on others."
I wonder what will be Dr. Cullen's enduring legacy?
Jan 24, 2006, 13:20
Swiss Slash Taxes
A new round of tax cutting is expected in many Swiss cantons during 2006 after voters in canton Obwalden decided to slash rates from January 1. Switzerland's taxes are among the lowest in the world, thanks largely to its system of direct democracy, which allows voters to decide what they pay. Dan Mitchell of the Heritage Foundation observes: "The voters of Obwalden decided that their future would be more prosperous if they could attract more rich people and create a better climate for wealth creation."
Needless to say, this upsets the left, which complains that low tax Swiss cantons are engaged in a 'race to the bottom.' Sensible people, by contrast, see this as further evidence that tax competition promotes lower tax rates and helps control the greed of politicians.
Jan 6, 2006, 15:23
Taxing Times: Tax Competition and Regulation
More information about how the Eastern European countries are developing and growing compared with "Old Europe". This time from Stephen O'Connor of Hungary - the view from the inside!
We are more like Hungary than you think!
Oct 31, 2005, 13:45