The budget delivered today was outstanding. It immediately delivered tax cuts without defaulting on obligations to taxpayers and citizens, while featuring increased spending in such vital areas as defence, policing, law and justice, and comprehensive reforms to increase the effectiveness of health and education.
Wait, what budget did you think I was talking about?.. I’m not talking about the “official” budget, of course! I’m describing the Libertarianz Alternative Budget 2007, written by Greg and Nik, edited and released by Pacific Empire’s Luke. If you’re curious about what the Libertarianz have planned for New Zealand, go check it out.
On the other hand, if you want the specifics of the official budget, check out the NBR. And for analysis of what it all means, Not PC:
More theft, more taxes, more spending, more compulsion — that’s the news from this new “sustainable” Budget: a budget that will sustain New Zealand’s place at the poor end of the OECD. A budget that gives back with one hand, and grasps just as hard as ever with the other.The only good news? The company tax rate drops to 30%, costing around $500 million a year, and there’s a derisory 15% tax credit for (narrowly defined) research and development.
That’s it. What’s left?
- “Chewing gum” tax cuts: Cancelled.
- A new “payroll tax” on employers through the all but compulsory Kiwisaver (the derisory tax credits are not inflation indexed so over time as people earn more, notes David Farrar, employers will end up with more and more of the bill).
- A $6 billion surplus, and even more petrol taxes! Up to ten cents a litre to pay for roads, and for public transport that people don’t use (a sop to keep the Greens in line).
Right, so a couple of minor tax cuts, more tax cuts cancelled, and a few major increases. All while there is a massive surplus. And effectively low-income earners are subsidizing the rich, through Kiwisaver, tax cuts on the rich, and increased corporate welfare. No tax-cuts for the poor from this Labour government.
PC also pulls out some relevant quotes on the nature of taxation. This is my favourite (of course):
“Be wary of strong drink. It can make you shoot at tax collectors, and miss.” – Robert Heinlein
And some other good ones:
“The power to tax involves the power to destroy.” – former US Supreme Court Justice John Marshall
“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” – Ronald Reagan
“The man who produces while others dispose of his product is a slave.” – Ayn Rand
Everything Labour does makes me despair for the future.
They absolutely hate the idea of anyone doing something independant of the government.
Rather than give tax cuts, they put in place a massive welfare system, recycling tax money back to most middle class families.
Now, instead of giving our money back to make our own decisions, we are to save through another government scheme.
What is Labour’s ultimate vision? Where everyone works for, is paid by, saves with and is dictated to by the government deciding what’s best?
This just convinces me I need enough money to buy my own island… Or failing that a large defendable neighborhood for when the country collapses under the weight of the bureaucracy. I’ll reserve a lot for the flat
Left by Craig D on May 17th, 2007