Both Nolan and I worry that the proposed income splitting regime for New Zealand taxation will reduce female labour supply.
Just listened to National Radio's 5 PM news update, and Peter Dunne reckoned that a feature, not a bug.
Mr Dunne says the proposal to allow income splitting could encourage more parents to stay home with their children.
The point is to put women back in the kitchen.
And now he's going on about how important it is for kids to be home with parents rather than in daycare.
The Reserve Bank Annual 2010 was far far too kind to him. I suppose that my understanding of the importance of rice pudding in the economy is insufficient for me to fully appreciate the merits of his position.
Hey, why don't we just set a $50/hr minimum wage for married women so that they're properly unemployable, as they ought to be on a proper progressive understanding of things.
