A few thoughts on the imposter that passes itself off as a fair tax system.
1. The top 10% of taxpayers paying 44% of the money is somehow called "progressive".
2. The bigger question should be asked firstly. Do we want a country that runs an expensive big government?
Or should we finally accept reality -that NZ is just a big Fiji - a few farms and some tourists. Cut our cloth to suit and be happier as a nannystateless country.
3. My bet is that GST will go to 15% with associated benefit rises and some leveling of top rates.
WFF will remain and property will be tinkered with around the edges.
4. My next bet is that sometime in the future when the other Labour gets back in, the top rates will be relevelled upwards again. We will be back to square one + 2.5%.
5. Which really makes the the upcoming debate about MMP far more relevant than this rearrangment of the deck chairs. Because one way or another under the current system we will always have a big, hungry government.
Mike Hosking on NZ vs Australia
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