ACT founder and candidate the Hon Sir Roger Douglas said ACT would make the first $10,000 tax-free for full-time income earners, and inflation-index tax brackets to restore 2000 values.(h/t: Deborah @ The Hand Mirror)
-ACT
How do you justify giving the tax break only to full time workers? Is part time work not important? Not even a little? As Deborah points out this is a spit in the face to anyone that looks after children. This policy completely distorts incentives towards full time work. Sure, that may not seem bad but kinda assumes that everyone can be fitted into a nice little homogeneous box that says that full time work is best for everyone. It's not. I used to kinda like ACT, it appealed to the inner right winger inside me but this policy seems to go against what the likes of Rodney Hide stand for - especially their rhetoric concerning 'choice' - I thought ACT would be the last party that would try to dictate how people can work through the tax system. I am very confused by this policy.
In terms of the other issue raised by this press release - tax bracket creep. I'm in favour of it and I thought it was already in place. A bit of research found that it is - just not to the extent that ACT wants it. It was announced in 2005 and the first adjustment would take place back in the 31st of March 2008 - only covering the period between the 1st of April 2005 and the 31st of March 2008. ACT wants it to cover the period going back to 2000. I'd be seriously more cautious doing that.
I do think that the tax brackets should be increasing by the rate of inflation every year. Not every three years in an attempt to build up a nice little stockpile for election year.
Man... long boring post. One question, did National increase the tax brackets in the 90s? That's something I want to find out.
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