I did a post last night called the poverty trap laying out the bleak situation many people are finding themselves in.
Job losses, rising prices, shrinking incomes. Not a great future for Kiwis, let alone our kids.
Despite the government spin, the economy isn’t in good shape. Look at our government debt and how it has ballooned. And how it will balloon left unchecked.
We need a plan to turn things round. A bold plan to stop our valuable assets being flogged off overseas, to give hard-working Kiwis a break, pay off the country’s ballooning debt and grow our economy. Here’s what we’ve said so far.
People need wages they can live on. A minimum wage that allows people to keep up with the cost of living.
Labour promises a $15 hour minimum wage.
We need to increase our savings and investments in a productive economy. We need to rebuild our economy on the back of exports. Not by selling our assets.
Labour will not sell state assets. You’ll have to wait for policy announcements on the other matters.
We need a fairer tax system where everyone pays their share
The first $5000 of your income, will be tax free.
GST will come off fresh fruit and veges.
Labour will introduce a capital gains tax. It’s predicted the tax will raise $26 billion over 15 years that can be used to pay off
debt, cut taxes for most New Zealanders, save our assets and prepare for the mounting cost of our aging population.
Labour will also put the top tax rate back up to 39 cents for income earned over $150,000.
That’s likely to affect around 2% of the country’s top earners.
A CGT is already in use in nearly all developed countries, including Australia, the United Kingdom and United States.
And Labour will use major government contracts to back New Zealand firms instead of exporting jobs offshore as National is doing.
Cost and quality will continue to be paramount considerations under Labour. But the new procurement policy will in future require companies like KiwiRail anf Govt depts and agencies to consider wider economic benefits rather than just taking a narrow accounting approach. As with CGT, most other countries have strong policies to back local industries and local jobs.
This is for starters. There’s more coming.