Tax revenue per capita still sliding sideways. That's the problem with fiscal tightness - if you are not spending much money into the economy, you don't get much back. Let's have a quick look at different categories of tax... [🧵1/n]
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Most NZ businesses (other than banks and monopolies ofc) struggle to make money in a prolonged recession, so corporate tax is tanking. Still room to fall further here - business stress indicators are on the rise, unemployment still going up. Long and variable lags and all that. [2/n]
Don't worry though, tax paid by workers is still holding things up. In fact, tax bracket creep is almost singlehandedly saving the Govt's precious fiscal targets. [3/n]
GST tells the consumption slump story. Sadly, our economy relies on people consuming more - that's how we create and sustain jobs. We could of course simply employ people to do useful stuff during downturns, but that sounds like communism, so, sorry people, punitive benefits for you. [Ends]
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