- one, simply cutting taxes will not instantenously increase NZ's productivity
- two, if the last election is any indicator, the electorate want more from government than tax cuts
- three, even if the first two are only partially true, Labour can cut taxes in the next budget thereby stealing National's thunder in the lead-up to the next election.
Remaining tax competitive with Australia ought to be and is a goal for the government but Labour are not so simple as to believe that people will up sticks and move West simply because they might earn an extra $10 a week. Again, a quote from the May 06 IMF report might assist:
Tax competitiveness with Australia, along with incentives for tax planning created by the gap between the 33 company tax rate and the top personal income tax rate of 39 percent, appeared to be possible issues for reform in an otherwise very sound tax system. (page 9 emphasis added)Sure, I live here with my family but it's not because I might earn more - Sydney is a great place to live for many reasons, a number of which are outside of any government's power but none of this means that returning to NZ does not remain a real option. As Dorothy is fond of saying; there's no place like home.