Call it what it is – A Payroll Tax

Ok, I haven't commented on the budget as yet for a number of reasons. One is that by and large it doesn't matter to me personally what the government of day does in the budget. The effect on me is almost always negligible so it is hard to be enthusiastic. The other main reason is I have been in a bit of a funk….but am now climbing out of that.

Now onto the main thrust of the budget. Cullen's Payroll Tax.

I fail to see any other way to explain his compuslory super policy for employers as anything other than a payroll tax. That is certianly what the small business owners I have spoken to in Ohakune think it is. Cullen has failed to grasp the essentials of Kiwi business and has shown this in a way that beggars belief. To give a tax cut that is unlike a tax cut to indivisuals in that individuals pay tax on earnings whereas companies pay tax on profit is actually not giving anything away. To cancel his chewing gum tax cuts just shows spite and parsimony. But the kicker for Kiwi business is the impost of a 4% levy against their payroll. That is what it is pure and simple, a payroll tax. The fact that Cullen has dressed it up as compulsory super does not disguise the actuality that it is a tax on payroll, ie an increase in taxation for business. the deceit is stunning and almost at the same level as their stealing of taxpayer money to fund their campaign.

National should immediately begin calling this the Cullen Payroll tax and say it loud and often. Cullen has obviously grown tired of kicking the average punter through taxes and has now decided to lick the crap out of the employers of the average punters. This policy WILL lead to downsizing for sure. Most companies and employers will now have to find 4% of their payroll per annum in either savings or cuts. Bet they cut, it is easier.