Tuesday, March 06, 2018

Michael Cullen can't be trusted

A report in today's DomPost  details Michael Cullen's thinking as he embarks on his chairmanship of the Tax Working Group. The title alone, Cullen: Taxes could change bad behaviours is enough to send a shiver down your spine. But so should this:
Cullen said taxes were normally higher in richer countries than in poorer ones and said New Zealand's tax system did less, compared to most in the OECD, to redistribute money from the rich to the poor.

According to latest OECD data (published 2017) NZ has the highest percentage cash transfer to the lowest quintile:

And NZ rates above the OECD average in how much of its GDP is turned into public social spending to the working-age population:

New Zealand doesn't do so much universalism but it certainly rates right up there when it comes to redistributing money "from the rich to the poor".

A very dodgy start from Cullen.