Thursday, April 23, 2009

The Bill's too big already Bill! Life is taxing enough!


Bil English today is talking gloomy. He has done for some time.

Is he shaping the country up for a cancellation of further taxcuts, as Not PC notes today.

He could be. If National stood for one thing, it was tax cuts and the party owes it to New Zealand to be faithful to its pre-election promise.

We already knew things were gloomy last October, so saying the situation is worse than expected will not wash either.

I can picture all the cries from Labour about National u-turning, being weak, betraying the voters, not to be trusated, even if cancelling taxcuts is what Labour would have delivered too.

However, Bill English rightly raised the cost of government debt and the burdens being passed on to future generations.

People are waking up to the costs of government debt the world over.

In the UK, figures like STG 20,000 or $50,000 per person have been bandied about.

The US also has a huge black hole of debt, being quadrupled by you-know-who.

Australia has blown off its government suplusses it inherited from Peter Costello and massive debts will follow.

We also need to look at the economic consequences too, the messages being sent.

Bailouts and big spending as shown by Obama and Brown have actualy weakened confidence and are fuelling the recession. There have been the Tea Party Protests across America as people see the debt burden being generated.

After two stimulus packages, which have failed, in Australia Kevin Rudd now talks of a third package. The economic forecasts for Australia today have just worsened.

And as Cactus Kate rightly notes, Britain's new 50% tax rate at the top will drive away the wealth creators.

So here's my advice to Bill English as he contemplates his budget.

Play it steady. Keep your promises on tax, you are rightly wary of debt, but if anything has to go, it has to be government spending.

The left paint this government as a slash and spend monster anyway. However, most normal people realise we face hard times. They have experienced a growing tax burden and seen little extra for all that extra government spending.

You will have to weild the axe and blame the previous government for it. After all, Clark, Culen and co were never afraid to blame National when it suited them. So get the knife out Bill.

Here is a time when New Zealand can set itself apart from the tax and spend debt monsters of overseas. We can be wise and prudent with low tax, an island of enterprise amid a sea of socialism! Just the thing to bring the jobs and economic growth we need.


12 comments:

baxter said...

"You will have to weild the axe and blame the previous government for it. After all, Clark, Culen and co were never afraid to blame National when it suited them. So get the knife out Bill"

Yeah but how do you blame Cullen and Clark when you have told the United Nations she is the ideal person to take charge of a ten billion dollar welfare bludget, and have given CULLEN a lucrative sinecure on the Board of the Nations only state-owned bank.

Barnsley Bill said...

The time has passed for tax cuts. The profligate waste and economic sabotage perpetrated by Cullen has removed any chance of tax cuts in the near future. Stop asking for them, it aint gonna happen until they can get debt and waste under control.

Anonymous said...

The time has passed for tax cutsCrap. I've a much much better idea:
turn off the DPB. On budget night.

whether you've had it for ten years,
or just got it yesterday - no moreRemember also that with the KiwiStealer changes, the tax cuts were supposed to be revenue neutral. So stopping the tax cuts is really yet another tax increase. And that makes you a commie.

Anonymous said...

More to the point, English is flat-out-lying.

If left to rise to those levels, it would eventually require "radical steps to bring it under control".We need radical steps now!30% cut on all civil services salaries.
immediately terminate the DBP.
terminate all government funding to education.

on budget night. as of midnight.

Shane Ponting said...

The government isn't going to pull us out of the recession, WE are going to pull ourselves out of it and one of the best things to encourage productivity I feel is to lower AND flatten the tax structure so you aren't penalised for being a "rich prick".

KG said...

I agree with Shane--a lowered, aimplified flat tax structure is the way to go.
'bailouts' just delay the recovery.

KG said...

grrr..typos..
simplified

Anonymous said...

Which part of "a really big hole in the accounts" don't you understand?

Even if we stopped welfare and health and education spending tomorrow (and each of those count for 30% of our tax spend: and you're not going to get much out of that by reducing waste or increasing efficiency) we've still got huge national debts to pay off.

It's quite possible to reward productivity and winners without a flat tax system - and that's what I advocate.

Zero corporate tax and zero FBT.
GST to say 30$ on essential food items, including fast foods, beer, RTDs etc, soft drinks.

And ideally a "truly flat" tax: $20,000 per head.

or failing that, say 30% on the first $100,000 of income; a 30% tax credit on the next $100,000, and zero thereafter.

So if you're earning say 30,000 you pay 9,000 tax;
at 60,000 you'll pay 18,000; at 100,000 you pay 30,000, at 150,000 you pay 15,000, and at 200K and above you pay zero income tax.

That's a tax scheme that really recognizes winners!

Sally said...

"...it aint gonna happen until they can get debt and waste under control."

So far National have not given me any hope that they will do very much with the massive central government waste.

A start at the top, with a desire to reduce the number of politicians along with their numerous advisors etc would seem to be a genuine leadership call.

Observer said...

10% flat income tax, no deductions

10% flat business tax on Gross Profit (EBITDA)

Reduce the size of the IRD to 1000, cut all government activities that are not to do with laws (Min Of Maori, PacificIsland, Womens', Ethnic, Childrens', etc affairs. (i.e. leave these peoples affairs to themselves and get back to governance of laws not people.

result?

Surplus!!

Anonymous said...

10% flat income tax, no deductionscapped at 100K?
I'd still prefer say a flat $10,000 tax per head.

10% flat business tax on Gross Profit (EBITDA)that's cos you're a commie. zero business tax.

Reduce the size of the IRD to 1000,..

result?

Surplus!!
Well it's pretty clear why you call yourself after a lefty Sunday newspaper Observer: it's because youre a lefty.

Frankly we could fire every MP and every policy adviser and everyone in every ministry and - these days - we'd still not get enough for a 1% tax cut.
These are not big ticket items.

By far the most of your tax dollars are split between Health, Education, Welfare, and Super. You want a real cut: that's where you've got to start.

http://www.treasury.govt.nz/budget/2008/taxpayers/02.htm/keyfacts08-01.gif

Shane Ponting said...

Cut welfare.