Beaumont Carol: Taxation (Annual Rates and Budget Measures) Bill — In Committee Third Reading 
Beaumont Carol: Taxation (Annual Rates and Budget Measures) Bill — In Committee Third Reading 
[Volume:672;Page:18957] 
CAROL BEAUMONT (Labour) 
: 
 I appreciate being able to speak on the Taxation (Annual Rates and Budget Measures) Bill. I am very pleased to follow my colleague Stuart Nash. He has been making outstanding contributions in this debate and has enlightened a lot of New Zealanders on issues to do with our tax system and that is very important. Part 1 is about our current tax system and I want to make some comments following on from Mr Nash’s comments. Perhaps I should seek leave of the Committee to allow Mr Nash to make some more comments. I think he has done an exceptional job in enlightening New Zealand on how unfair our current tax system is. 
It has been a deliberate decision of this National Government to create a less fair tax system. Let us be clear about what we are talking about here. We are talking about tax rates that were changed so that the top 10 percent of earners in New Zealand had significant tax cuts—tax cuts that they do not need and tax cuts that have not actually benefited our economy. On this side of the Chamber we do not believe in the trickle-down effect that members on the other side of the Chamber seem to be so reliant on. We do not believe that just because those at the top are given more money in their pockets they will spend it in a productive way that assists the economy. We believe that the people who need assistance from the Government are low and middle income New Zealanders. 
As Mr Nash pointed out to us the Government tried to sell those tax cuts as being fiscally neutral. It said that they were a tax switch. Members across the other side of the Chamber must think New Zealanders are very silly. I certainly do not but you must think they are— 
The CHAIRPERSON (H V Ross Robertson) 
: Order! 
CAROL BEAUMONT 
: I am sorry Mr Chair; you of course do not. Members across the other side of the Chamber however clearly do think the public are silly if they think the public believe this tax switch nonsense. Out there in the real world low and middle income New Zealanders know that things cost them more. They know that through the increase in GST they have effectively had to bear the cost of tax cuts being given to the wealthy. It has not been fiscally neutral. There is a hole in the Government finances. 
I find it bizarre that people across the other side of the Chamber can go out there and talk about the reason for the deficit being the Christchurch earthquake and the global economic crisis. Yes of course those are elements in it but some of it was a deliberate decision of the Government to cut its own revenue—to give tax cuts that were unfairly weighted in favour of those at the top. So take responsibility for the deficit and do not ensure that the costs are all borne by low and middle income New Zealand. That is our message to members opposite. Of course it is not going to be listened to. Members across the other side of the Chamber are out of touch if they think New Zealanders buy that the deficit is nothing to do with the Government. People do not buy that. They do not buy the tax switch notion. 
I really liked the description my colleague Stuart Nash gave of the importance of the tax system being about taxing to do good. Tax is effectively the income the Government gets to do things. Unfortunately for all of us this Budget is another do-nothing Budget in terms of rebuilding our economy. If members opposite—if we all—looked at what was needed to grow our economy we would not see things like cuts in investment in industry training and skills development. It is an absolute outrage that in this country we are not investing in our people so that they have the opportunity to get a job they have the opportunity to get a better-paid job and they have the opportunity to keep a job and have greater job security. It is an absolute outrage that we are not investing in our people so that they can be more productive at work and we can transform our workplaces into better more effective more productive workplaces that provide the goods and services this country needs. It is an absolute outrage that across the other side of the Chamber there is some view that the Government has no responsibility for growth for stimulus and for other things that will lead to jobs.