So we have been told the recession is officially over, but many people I have spoken to while attending functions during the past two weeks are still suffering and concerned about the future.
The feeling is that National are focussed on helping the privileged few at the top of the tax bracket, while the lowest earners will get nothing or a few cents pay rise which will struggle to cover the increased cost of living.
In Australia the bottom 50 percent of wage earners are better off than the bottom 50 percent in New Zealand – this has to change if the National Government really wants to catch up with Australia.
With the government unveiling major tax reforms today it is vital that any reform has to benefit the majority of tax-payers and particularly the ones that need it the most – the bottom 50 percent.
Prime Minister John Key will announce his tax reforms later today, will they benefit the many or the privileged few?
Of course they’ll benefit the rich. Key’s already said as much. What’ll be interesting is how many crumbs, if any, he’ll give to those at the bottom, people he referred to as including “those that don’y pay tax”. This is going to interesting because even beneficiaries pay tax, but that’s not all. Whenever there are tax cuts the gross rate of benefit is cut so that the net rate of benefit remains the same. In other words, beneficiaries are deliberately excluded from receiving the dollar gains tax cuts bring. The nats introduced this idea (of employment status being relevant for tax purposes) in 1996 and it’s remained with us in one form or another ever since. So is Key going to abandon this notion? Will it just be this one time? Will the increase in GST make the tiny increase in benefits insignificant? What he does, it’s going to hurt the poor because that’s what people like Key and English do. They cannot do anything else.
Your dumb Ray. Labour’s way to help the bottom is to tax to buggery and re distribute. This is not a long term solution as the tax base will shrink. Getting the tax system right where investment will flow to wealth generation is the best way to provide jobs in the long run. Some in the bottom 50% are wealthy people who have hidden their tax laibility and claim WFF etc. Are these people who you are wishing to protect?
Most Chinese people I meet know welfare is not the answer and the best way to get ahead is to do this yourself, not rely on handouts.
Georgia: The word you’re looking for is “you’re”, as in the shortened form of “you are”. Perhaps some proofreading would be in order before you call other people dumb?
Hey Georgia,
Do you want poor people beggin on the streets, like in your beloved China? Plenty of homelessness here. Unlike there, we actually know that people need a roof over their head. We are better than them.
My take on National v Labour.
National (conservatives) pursues policies that seek to keep and increase the wealth in the hands of those who have it. Their support comes from ‘aspirational’ classes who buy their single focus arguments straight from treasury.
The Labor party emerges from the union movement and believes in collective responsibility. They seek to assist those in employment (& future generations) to have the quality of life they deserve (but the boss wont pay for). The last Labor govt also sought to support business in areas they needed support or encouragement, as this is the best way known to support employment and wage growth.
National supporters must have had a word to the govt and said that actually R&D credits/subsidies & so called distortions can benefit business/economy.
Jeremy – a few years ago, when I was a Labour stalwart, I had an argument with a tory friend of mine.
He had even better working class credentials than I did – son of a faceworker, brought up in a mining village in South Yorkshire.
His take on the Labour Party was that in fact they had a vested interest in people NOT getting on. He observed that whenever people did ‘better’ themselves the majority didn’t support Labour any more. And that if Labour lifted half the people off some sort of welfare dependency who languish there then they’d never have a hope in hell of getting back into power.
I argued vigorously against him, but now, in retrospect, I think that his views aren’t entirely without merit.
This is going to make surviving even harder.
GST going up. Rent going up. My rent anyway and the wait for state houses is a very long wait.
Add onto that the fact I’m also a student and they no longer have the TIA to cover short fall in cost of childcare while you’re studying, then I’m looking at a very hard lean year.
That’s all I’m going to say due to the fact I’m trying to keep my cool after reading other blogs that state I’m a parasite raising uncouth kids (shame mine say please and thank you and you’re welcome out of habit that is now entrenched in them as it doesn’t fit with the acceptable stereotype)
You are right I suspect.
People are often given a hand up, and then when its their turn to help the next generation they suddenly forget the ‘gifts’ they received and cop an attitude of I did it all myself, why should my taxes help you. & until they get sacked at 55 they think they can look after themselves.
The biggest proponents of this was Ruthonomics where the boomers removed free education, scrapped trades, all funding directed at the following generation X. Yet at the same time they kept universal super and benefits the boomers would still enjoy. (note: the talk now is of raising the super age not income testing it).
@Jeremy: these conditions were foisted onto New Zealand – people did not vote for them, and in fact people voted for MMP in part to stop political parties from being elected on the grounds of false promises.
@ Anne – don’t let the nasty mindless bleating on some web sites discourage you or distract you from your studies. There seems to be a lot of right wingers commenting at the Standard these days, you would think they haven’t got a web site of their own to go to.
What happened to the previous post? The mood is turning to anger here…the only bright spot on the horizon is the rabbit plague coming our way..we’ll all be sitting out on our porches with our shotguns , swapping stew recipes.
Let’s be honest National’s tax announcements are going to help no one other the rich or better off, in the long run. Absolutely disgusting!
@Olwyn
I presume you ment me and not Anne.
I don’t let things get me down for long. I think it was the fact my rent went up the same day they increased GST and to top it off when I was looking for info about it, I came across those other blogs. I only let myself wallow for a few hours before I tell myself to just get on with things and pick myself back up.
Good for you Mother..my husband and his friends were made redundant last October..We do all we can to stay on top too.
mentally and emotionally I mean..We also stick close with our friends and neighbours and do our best to support one another.