Because, as I have previously pointed out, the people in receipt of the bulk of the tax cuts are more likely to use them to pay down debt and increase savings. At the expense of the other 80% of taxpayers and any short-term fiscal stimulus.
Those tax cuts go to everyone. National dropped the larger tax cuts that would have targeted higher income earners.. Tax cuts always benefit the people who pay the most tax. Personally I think that is fair. [we’ve been through this time and again. look at the archives under ‘tax’. Cuts don’t have to favour the rich and they definitely don’t have to get infinitely larger as income rises. Labour’s cuts, the current legislated ones, cap out at 80K, National’s ones just get larger and larger the richer the taxpayer is, and National’s cuts for ordinary Kiwi’s are smaller than Labour’s. SP]
As for Kiwisaver. An option to save 2% of your weekly income is fair. And the employer giving extra I never liked and think its still too harsh. Where National went wrong was in making the changes where the income cut in to how much the government kicks into the scheme. Hopefully, they make that change when they legislate.
Well he does have a point, nothing like the state abandoning all responsibility to its citizens to to encourage self-reliance. Just a bit of a shame the people needing the most ‘incentive’ don’t actually have any money to save.
No they don’t. Forty percent of the cash goes to the wealthiest ten percent of taxpayers, while anyone with a family earning less than $44,000 a year pays more tax than they would have under Labour.
Oh, and any anyone in Kiwisaver is worse off, no matter what their income.
I did say average. And why link me to two left blogs (one this very blog) who are clearly partisan when it comes to tax cuts and thus are not balanced.
[the numbers in the links are accurate. If you’re arguing they’re not just because the sources are leftwing, I hope you have some evidence. SP]
Ginger: why do you persevere with this practice of saying things that happen to be wrong, and then when you’re provided with evidence proving you’re wrong you claim bias, or, partisanship?
As Tane pointed out – quite succinctly I might add – “Forty percent of the cash goes to the wealthiest ten percent of taxpayers, while anyone with a family earning less than $44,000 a year pays more tax than they would have under Labour.” Both the links he provided provide you with are only “biased” stylistically, the numbers provided on both links come from National’s tax policy. If the same numbers were on a site like Kiwi-blog the writing around it would show “bias” towards right-leaning ideology. My point is: look at the numbers, not the rhetoric surrounding them.
Actional giving tax cuts to the rich? My god, what is the world coming to.
In other news: China is a communist country that everybody wants as a friend and Russia does not hold fair elections and is about to change their constitution to let Putin back in. Such is the world.
I am going to make such a mint off them this year it is obscene. And I would give it all away to have labour/green in power right now. Go figure.
I like your input here Ginger. A lone, (semi 🙂 ) rational right voice in a sea of lefties.
I don’t agree with anything you say, but I figure that provide us something worth being annoyed by and typing about. Good on you!
Yeah, please don’t leave us Ginger, I don’t know what we’d do without you and those of your ilk. This site would be a left-wing hug-fest if people like you weren’t around.
Clearly not everyone is going to be able to save because some at the bottom need all their available income to meet their living needs. Kiwisaver wasn’t a complete fix for this, at the lower end of the income scale people were still unable to afford it, especially with a 4% entry. I’d prefer to see Kiwisaver reduced to a 1% (or even lower) entry to enable those at the bottom to join in. Employers shouldn’t be forced to match contributions, it makes it harder for those struggling just to pay the staff they have and raises the risk of having to lay off staff to keep their business running.
I think we need some sort of cap on how much the government contributes though, it can’t just be an open chequebook.
The tax relief being touted by National is NOT the solution to this problem for all its cost. In rough summery: it is a short-term and therefore short sighted solution to a long term problem. It will also leave NZ in a worse debt situation than before with a very low stimulatory effect due to the income bracket it targets. (i.e. High income bracket tax relief such as the “bush tax cuts” have the lowest stimulatory return)
See the graph at the end of this blog entry: http://www.ourfuture.org/blog-entry/2008104427/tax-cuts-ineffcient-stimulus
Kiwisaver was a long-term solution the core debt problem in NZ which is compacting this crisis on NZ and NZers who have taken on too much debt. Of course kiwisaver would not be a complete solution to this problem either – but it sure does help. In 10 years once savings have grown and compounded, it might be renamed “economy saver”.
I would have preferred more ingenious and targeted initiatives. Utilising industries that have or will have spare capacity – such as the building industry. More specifically using them to increase the growth potential of our country.
No offense but my first reply could have rebutted without editing inside.
The problem is not with the data in either of those left-wing blogs. Its the context you put them in. You say the tax cuts are taken away from lower income people to support the higher income. But tax cuts do that. Labour’s tax cuts do that. When you earn 80, 000. You don’t pay that 80, 000 dollars at the top rate. You pay a proportion at the top rate. Even if you said no tax in the first 20, 000 its still the taxpayers who earn the most money. Second, the tax cuts targeted average income earners. Its clear in the data that is what happened. Yes higher income earners get more benefit from the tax cuts. But that is because they pay the most taxes and they only pay a proportion of tax at that top rate. The rest is taxed at what other income earners are paying.
If it was really a tax cut for the rich. The top tax rate and threshold would have dramatically dropped. Ie. 30 cents for earners $50, 000+. National’s plan originally was to see a bigger tax cut for the rich. But because of economic conditions that was changed so they insured AVERAGE earners would get a tax cut. So while with National’s plan higher income earners get the most benefits. That is inherent in how tax is paid in New Zealand in the first place.
You can make your argument with families. That is a fair assessment. But National’s tax cuts benefit most income earners. Always higher income earners benefit from tax cuts more than others. But the tax cuts still delivered to the average worker. Thus was targeted to the average worker.
—-
Oh and thank you vinsin and Mr Magoo its nice to be insulted. You can say a lot about me but I typically don’t go round insulting people and its a pity you can’t do the same.
Oh and thank you vinsin and Mr Magoo its nice to be insulted. You can say a lot about me but I typically don’t go round insulting people and its a pity you can’t do the same.
Actually it was an honest compliment to an opponent about being stoic in an obviously hostile environment. But I guess you are so used to the insults on this site that you missed it?
Regardless. On to my disagreements with your point of view:
At the end of the day, tax cuts give cash back to workers. They do not have to be given back proportionately and in fact can be given in a almost completely flat across the board way. (e.g. first 20K tax free)
The effect of that policy on anyone earning more than 20K is that they ALL (i.e. almost all in full time work) get the same amount of tax relief. No differentiation at all.
The opposite scenario is to reduce the tax rate by a flat amount. (i.e. all tax reduced by 2% at all levels)
The obvious effect of this policy is to give the richest people a disproportionate amount of the total tax relief. This is because most people in NZ do not actually earn a heck of lot compared to the top 5-10%. (i.e. we are talking medians here, not averages!)
There are all sorts of interesting policies in between. Working for families being one of the most innovative I have seen in that the poorer and more “child strapped” you are, the more you get.
National have opted for a solution more towards the “2% for all” scenario, except that they offset the lower income people by cutting a few other things they may have been entitled to. Their package is quite complicated and as far as I can tell was mostly based on gettimg votes from those not covered by working for families and kiwisaver.
Now you may make an argument over whether the wealthy deserve more cash than the average person during this crisis because they “deserve it more”, but I would imagine that 70% of NZ would not agree with you.
I completely disagree with tax cuts as a solution to this problem. Tax cuts to anyone earning over 70k, triply so. I would remind everyone that we already got a tax cut, so a second is just not sensible at the moment. (some missed out, but the idea is that a cut stimulates growth, not make single and/or rich people feel good)
As I mentioned earlier, I would prefer that the money be spent generating jobs and smart infrastructure investment.
ginger. you’re right you can’t argue with the numbers, and the numbers for nationak’s cuts are 40% of the money going to the wealthiest 10%.
The major difference between national’s tax cut and labour’s is national will cut the top rate by 2% and not raise the threshold for the bottom 12.5% rate. Tax cut packages don’t have to be designed like that
You have to give it to him! – Ginge is persistent, or thick, or both!
How is it possible to NOT see that the tax package promised by National rewards the top income bracket AT THE EXPENSE of those on low incomes – the very ones that will be affected the most by the stricter mortgage criteria introduced by the Banks? And now English has the AUDACITY to somehow claim it, as if its a good thing and the result of National’s prudent management of the economy already!
Low income earners pay very little tax. Low income families are generously supported by working for families. Low income earners get a tax cut. Its not at the expense of them as they are supported several ways via state housing, accommodation supplement etc etc etc. Tax cuts will never work for the truly low income workers. They can only benefit via welfare transfers.
The mortgages are a whole separate matter. Labour didn’t do well in this area either. And I can’t see how low income earners could even come up with 5% deposit on a mortgage.
personal interest.. re your wee picture at top right comments.. is it a brussels sprout? I ask because recently the seeds I planted came up with the look of yours but rounded leaves and tips.. and I’m wondering just what I have got.. someone having mentioned they look like broccoli..
Low income earners pay very little tax
Yes, because they also earn very little. They also have a much larger propotion of their income devoted to “keeping alive and well” than wealthy people.
Tax cuts will never work for the truly low income workers.
The difference they make is far more pronounced for low income earners than for the wealthy. Come on now, you really think that 60/wk for someone on 150k per year is going to impact them more than 20/wk for someone on 30k per year?? Pleeease.
But I do agree with you on that point! Tax cuts are a “block of cheese” joke and will not really serve the public good in the end. As much as we like cash in our hand, it has a history of not being as useful to us as we had hoped compared to healthcare, savings, etc.
“And I can’t see how low income earners could even come up with 5% deposit on a mortgage.”
Welcome home loans. More state houses. Shared equity.
I am sorry, your argument here simply does not fly. In fact it barely stands up at all.
State Houses. Labour is opposed to selling state houses to tenants. Welcome home loans has numerous problems. The fact is there are very few houses that fall under its criteria. Shared equity is very limited and you still need to raise 5% deposit.
Once again the Nats show how effective saying the agreeable things to certain audiences is. I dont think they can commit to saying the same thing time and time again.
Except: “Fresh” and “Ambitious” They sure like saying that.
Please, please respond with something about “they should stop spending the dole on booze and drugs’, I like that one.
If I recall the HES breakdown from Statistics New Zealand correctly, it shows that lower income households spend proportionately more of their income on cigarettes and alcohol than the national average… take from that what you will.
QoT – Why are you talking about beneficiaries. No one is talking about beneficiaries. The only way they make more money is if their benefits rise or they get a job.
It amuses me that when people argue people who pay less tax should be given back more of it. 12% of the working age population in New Zealand pay 51% of the personal tax take. So who is being dealt a disproportionate hand here?
Right ginge, because beneficiaries don’t pay tax … OH WAIT THEY KINDA DO, just like Real People.
Phil – as soon as you define “lower income households” and state the actual proportions involved, it’s just so much “Poor people are stupid and deserve to not be able to afford food for their children”.
Yes they do pa tax indirectly true. But I still struggle to see your point about beneficiaries. Since we’re talking about tax cuts for those who pay income tax.
Pascal. I do not have those figures at my fingertips, and I believe they fall outside the study’s parameters. But income tax levels should be set on the basis of income, and not wealth.
Yikes – I feel for Ginger. It’s nice to get a little heated debate going, but lets be rational.
1. Low income families earn less, therefore spend proportionately more on consumption. Therefore they save less than those on higher incomes. This is always going to be true…can anybody suggest a way out of this?
I agree with Tim – maybe the threshhold for Kiwisaver should be dropped to 1% – yes its a tiny amount, but something is better than nothing no? 4% is really high for somebody on the average wage or lower…and we should be encouraging saving at all levels of society.
2. Beneficiaries pay tax through GST – consumption taxes and yes they don’t benefit from income tax cuts, seeing as they do not technincally work and pay personal income tax. I’m sorry, but that seems fair to me. If an individual is on the unemployment benefit I feel they shouldn’t receive the same advantages as somebody who works. Those on sickness or invalid benefits are an entirely different story. Maybe the problem is in lumping different types of beneficiaries into one category…when they all have different needs and incentives.
3. The response to National’s tax cut package was that the rich are benefitting more than the average kiwi…
The way I see it is that if you have natural talent or you worked your butt off to get a job that pays highly, why should you be penalised for that? Most of the people I know that earn over $60,000 have either spent a significant amount of time studying or working their way up to get there. They spent time and money to get where they are and to maintain that position. Why begrudge somebody for having money?
Also – note the difference between income and wealth. Two very different things…!
Lastly, what constitutes an average kiwi? Moreover define ‘rich’…
Steve Withers, yes 1% makes for a poor retirement plan but is nonetheless savings and in that respect is better than saving 0%. Also these people will receive superannuation.
Additionally Kiwisaver funds can also be used towards a house deposit (and contributions can be funnelled to mortgage payments) and in that respect the 1% could be more useful.
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Since becoming the world’s first openly transexual mayor and member of parliament, Georgina Beyer has been recognised as a trailblazer for trans rights. Daphna Whitmore talks with her about where she sees the current trans movement We start out talking about legislation the government put on hold that would have ...
If FFNZ really put their faith in “Top Medical Journals” they would now be amending their billboards to recognise new research results. Image from FFNZ but updated to agree with the latest research. ...
National Messiah? Chris Luxon identifies himself as an evangelical Christian. If he is genuine in this self-characterisation, then he will take every opportunity his public office provides to proselytise on behalf of his faith. He will also feel obliged to bear witness against beliefs and practices he believes to be ...
I'm going to make a Reckless Prediction™ that the Tories have 'topped out' in the 'poll of polls' / Britain Elects multipoll tracker at about 38%, and in the next week we will start to see Labour creep up on them.In fact, we might just be seeing the start of ...
by The Council of Disobedient Women Lizzie Marvelly: “I may have missed this… has @afterellen gone all terf-y? Or am I reading something incorrectly? “ https://twitter.com/LizzieMarvelly/status/1191840059105742849 After Ellen is a lesbian website that is unashamedly pro-lesbian, as you’d expect. So why is Ms Marvelly so bothered about lesbians having their ...
It's been a great week of progress: we've celebrated Children's Day, we've made communities safer with 1800 new police, and we've seen almost 90% of eligible schools take up Government funding to scrap school donations - taking pressure off the families of more than 416,000 students. ...
Hon Shane Jones, Minister of Forestry The Government will further strengthen New Zealand’s wood processing sector as part of our focus on ‘value over volume’ in our forestry industry, Forestry Minister Shane Jones says. Minister Jones will today meet with forestry representatives in Northland to signal new measures to help the ...
New Zealand First are celebrating the announcement of an investment of $3.5 million into five new trapping devices. These are a range of bait and trap devices, all designed to be left unattended for long periods of time. NZ First conservation spokesperson Jenny Marcroft says that this latest development will ...
Clayton Mitchell, Spokesperson for Consumer Affairs The ‘wheel clamping’ Bill that will cap clamper fees to $100 passed its third readinginParliament today. New Zealand First welcomes The Land Transport (Wheel Clamping) Amendment Bill to combat predatory wheel clamping behaviour in what is currently a largely unregulated business. Cowboy clampers are: gouging ...
Jenny Marcroft, Spokesperson for Health New Zealand First welcomes the passage of the Mental Health and Wellbeing Commission Bill through its first reading in Parliament. “Today’s progress takes serious action on the mental health and addiction crisis the country is facing,” says New Zealand First Health Spokesperson Jenny Marcroft. “The re-establishment ...
Mark Patterson, Spokesperson for Primary Industries Today the Government announced the delivery of the promise to protect New Zealand interests by applying a new National Interest Test to the sales of our most sensitive and high risk assets to overseas buyers. This further strengthening of the Overseas Investment Act will ...
The Coalition Government is delivering on its promise to protect New Zealanders’ interests by applying a new national interest test to the sales of our most sensitive and high-risk assets to overseas buyers. Under current Overseas Investment Act (OIA) rules, assets such as ports and airports, telecommunications infrastructure, electricity and ...
Rt Winston Peters, Leader of New Zealand First Allegations raised this morning by Stuff Limited / Fairfax concern a party matter but I am confident that New Zealand First has operated within electoral laws, now and for the last 27 years. Declarable donations were declared to the Electoral Commission. Our ...
The chairman of the Upper North Island Supply Chain Strategy (UNISCS) working group, Wayne Brown, has hit back at critics of his group’s recommendations to relocate the Ports of Auckland cargo operations to Whangarei’s deepwater port of Northport. The working group's recommendation to close Auckland waterfront to all but cruise ...
Jenny Marcroft MP, Spokesperson for Health New Zealand First backs the public to decide on the End of Life Choice Bill via a referendum at the 2020 General Election. The Bill, with New Zealand First’s referendum provision incorporated, passed its final reading in Parliament this evening. New Zealand First Spokesperson for ...
Darroch Ball, Spokesperson for Justice New Zealand First is proud that a key Coalition Agreement commitment which will provide for a more transparent and effective criminal justice system has been realised. Legislation to establish the Criminal Cases Review Commission, an independent body focused on identifying and responding to possible miscarriages of ...
"Today we have made a choice that will leave a legacy... I hope that means that future generations will see that we, in New Zealand, were on the right side of history." - Jacinda Ardern, Third Reading of the Zero Carbon Bill ...
Darroch Ball, New Zealand First List MP A Member’s bill has been proposed that would provide income tax exemptions for all New Zealand Defence Force (NZDF) personnel while on operational deployment overseas. The Income Tax (Exemption for Salary or Wages of NZDF Members on Active Deployment) Amendment Bill proposed by New Zealand First ...
Rt Hon Winston Peters, New Zealand First Leader New Zealand First is proud to have brought common sense to the Climate Change Response (Zero Carbon) Amendment Bill, which passed its final reading in Parliament today. Party Leader Rt Hon Winston Peters says months of hard work went into negotiating a balanced ...
Jenny Marcroft MP, Spokesperson for Health New Zealand First has listened to calls to recognise paramedics as registered health professionals under the Health Practitioners’ Competence Assurance Act (the Act).Today, the Coalition Government announced plans for paramedics to be registered as health practitioners under the Act, and the establishment of a ...
Stewart Island/Rakiura has been granted $3.16 million from the Provincial Growth Fund to help build two wind turbines, putting the island on a path to sustainable electricity generation, Environment Minister David Parker announced today. “Stewart Island is our third largest island, after the North and South Islands, and it is ...
A major new report on the global economy shows New Zealand is in good shape amid increased global headwinds. The Organisation for Economic Cooperation and Development (OECD) has just released its latest Economic Outlook. It shows the OECD group of economies is forecast to grow between 1.6% and 1.7% across ...
The Coalition commitment to add 1800 new Police officers to frontline policing has been achieved with the graduation of 59 constables from the Royal New Zealand Police College today. Prime Minister Jacinda Ardern and Deputy Prime Minister Winston Peters say today’s graduation means 1825 new Police have been deployed all ...
Ensuring APEC work gets input from diverse New Zealand business and trade interests is behind three new appointments to the APEC Business Advisory Council (ABAC), Prime Minister Jacinda Ardern says. Rachel Taulelei, Malcolm Johns and Toni Moyes have been appointed to represent New Zealand on the Asia Pacific Economic Cooperation (APEC) ...
Nau mai, haere mai. Tēnā koutou, tēnā koutou, tēnā tatou katoa. Thank you for having me to speak today. To start, I’d like to acknowledge Sharron Lloyd, the General Manager of the Trans–Tasman Business Circle, the partners for this event Westpac’s David McLean, and Derek McCormack from AUT, and, of course ...
A four-month investigation by former Environment Court judge Professor Peter Skelton found that Otago’s freshwater planning system is not fit for purpose to manage the region’s rivers, lakes and aquifers and that the Council has inadequate rules for the taking of water and the discharge of nutrients. “Existing planning provisions ...
Introduction Thank you for the invitation to speak to you today. This is the first opportunity I’ve had to speak to an LGNZ meeting since the local elections, and I’m delighted to see the fresh faces of newly elected mayors. To returning mayors here today, as well as chief ...
Foreign Affairs Minister Winston Peters departs New Zealand today to attend the G20 Foreign Ministers’ Meeting in Nagoya at the invitation of this year’s G20 President, Japan. “This is the first time New Zealand will attend a G20 Foreign Ministers’ Meeting and we are deeply honoured that it is at ...
Foreign Affairs Minister Winston Peters today announced the appointment of diplomat Carl Reaich as New Zealand’s next Ambassador to the European Union. “The Ambassador to the EU is one of the most important and senior roles in New Zealand’s foreign service, advocating for New Zealand’s interests with the EU institutions,” Mr ...
Innovation and technology are behind five new tools to give nature a helping hand by helping eliminate predators, funded through the Provincial Growth Fund (PGF), Minister for Conservation Eugenie Sage and Parliamentary Under-Secretary for Regional Economic Development Fletcher Tabuteau announced today. “The new tools will be trialled in ...
Foreign Affairs Minister Winston Peters has welcomed the first reading of the Asia Pacific Economic Cooperation 2021 (APEC 2021) Bill in Parliament today. The temporary bill supports New Zealand’s security preparations for hosting the Asia Pacific Economic Cooperation (APEC) Forum in 2021. “APEC is the leading economic and trade forum ...
The Government is making progress on improving the wellbeing of the one million New Zealanders under the age of 18,” Prime Minister Jacinda Ardern said on World Children’s Day. The Government has today recommitted to the most widely ratified human rights treaty in history – the United Nation’s Convention on ...
Minister for Women Julie Anne Genter has released a new report celebrating the contribution of Māori women in business across Aotearoa New Zealand. “Māori women are leaders in our communities, they employ many people and support our economy and our communities,” Julie Anne Genter said. The report, Ngā wāhine kaipakihi: ...
Four parcels of land have been bought in Omokoroa, in the Western Bay of Plenty District, for an education facility that will accommodate both a primary and secondary school on a campus-like facility, Education Minister Chris Hipkins said today. Two parcels were acquired from private land owners and two were ...
1 million New Zealanders warmed by the Winter Energy Payment 36,000 families bank the Best Start Payment in first year 6,000 more families received the Family Tax Credit, 220,600 in total They receive an increase too – from an average of $117 to $157 a week for Inland Revenue clients, ...
New rules to clamp down on overzealous wheel clamping and extortionate fees charged in order to release a vehicle have passed their final stage in Parliament today. The Land Transport (Wheel Clamping) Amendment Bill has now passed its third reading. “These changes mean $100 will be the maximum wheel clamping ...
An independent Mental Health and Wellbeing Commission is a step closer after it unanimously passed its first vote in Parliament today. The Mental Health and Wellbeing Commission Bill lays the groundwork for establishing the Commission as a fully independent crown entity – delivering on a key recommendation of He Ara ...
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to screen travellers for border and immigration risks off-shore before they travel to New Zealand. It was launched in August and became mandatory on 1 October 2019. More than 500,000 NZeTAs have been issued since ...
A proposed national plan of action to reduce the number of seabirds caught in fisheries is being circulated for public feedback. Fisheries Minister Stuart Nash and Conservation Minister Eugenie Sage say New Zealand is a global centre of seabird diversity with about 145 species in our waters. It has more ...
The Government is delivering on its promise to protect New Zealanders’ interests by applying a new national interest test to the sales of our most sensitive and high risk assets to overseas buyers. Associate Finance Minister David Parker said under current Overseas Investment Act rules, assets such as ports and ...
The Government is building special housing to accommodate one of Aotearoa’s greatest taonga- our kaumātua, says the Minister for Māori Development, Hon Nanaia Mahuta. Speaking at a National Kaumātua Service Providers Conference in Rotorua today, the Minister reinforced the importance kaumātua play in maintaining and passing on mātauranga Māori, knowledge, ...
Eleven men from a pilot forestry training programme for prisoners in Northland now have full time jobs or job offers upon release, Corrections Minister Kelvin Davis and Forestry Minister Shane Jones announced today. The ‘release to work’ programme was a collaboration between Te Uru Rākau and the Department of Corrections, ...
Minister of State Services Chris Hipkins today introduced into Parliament a Bill that will make it easier for the public service to tackle the biggest challenges facing Governments. The Bill represents the most significant change in the public service in 30 years. The State Sector Act 1988 will be repealed ...
The families of more than 416,000 students will be better off next year as their schools have signed up to the Government’s donations scheme, Education Minister Chris Hipkins said today. The scheme will see almost $62.5 million in additional Government funding go to schools nationwide next year. “I’m really pleased ...
Foreign Affairs Minister Winston Peters has announced further support as the Government of Samoa responds to a serious measles outbreak. “New Zealand will deploy a further 18 vaccination nurses, bringing the total to 30 working in Samoa over the next four weeks,” Mr Peters said. “A New Zealand Medical Assistance ...
Fa’atalofa atu, malo e lelei, Kia ora koutou katoa Thank you to the Child Poverty Action Group for asking me to be here today to provide an update on some of the things that have been happening across my the social development portfolio. Can I firstly acknowledge the vast ...
***Please check against delivery*** Good morning everyone. It is a pleasure to be with you this morning to open this year’s New Zealand Thoroughbred Racing Conference and AGM. Firstly, thank you Dr Alan Jackson, NZTR Chair for your introduction. And let us acknowledge also: The NZTR Board; Dean McKenzie, Chair ...
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer and more secure, Associate Minister of Housing (Public Housing) Kris Faafoi has announced today. Both renters and landlords will benefit from the suite of practical changes to the Residential ...
A marine conservation milestone - the 20th anniversary of the establishment of Te Tapuwae o Rongokako Marine Reserve - is being celebrated today at a community event in Tairāwhiti/East Coast attended by the Minister of Conservation, Eugenie Sage. “The creation of this marine reserve in November 1999 was a game ...
The Government is asking the food industry to step up work to tackle obesity including reducing sugar, fat and salt in their products, better information for consumers, and tighter restrictions on advertising to children. Health Minister David Clark and Food Safety Minister Damien O’Connor have responded to a ...
ew, modern emergency department and outpatient facilities at Queenstown’s Lakes District Hospital mean better emergency care for the growing tourist mecca’s visitors and locals, says Health Minister David Clark. Today Dr Clark officially opened the hospital’s redeveloped Emergency Department and Outpatient facilities. The new facilities include: • An extended Emergency Department ...
Associate Health Minister Julie Anne Genter says today’s release of sexual and reproductive health data reinforces the significance of the Government’s commitment to providing free or very low-cost contraception. The Ministry of Health today published statistics from the Ministry of Health’s 2014/15 Health Survey. “It is important people can make ...
Foreign Minister Winston Peters has announced that at the request of the Samoan Government, New Zealand will be providing further support to Samoa as it faces a worsening measles outbreak. “In response to a request from the people of Samoa, New Zealand is providing 3000 measles, mumps and rubella (MMR) ...
“The new Disability Action Plan 2019–2023 moves us towards the inclusive and accessible New Zealand that this government has committed to,” Minister for Disability Issues Carmel Sepuloni announced today. “The Action Plan was designed by disabled people, their family and supporters, the disability sector and government agencies. It will ensure ...
Third Singapore-New Zealand Defence Ministers’ Meeting 14 November 2019 Joint Statement 1. Defence Ministers Ron Mark and Dr Ng Eng Hen today conducted their third annual Singapore-New Zealand Defence Ministers’ Meeting in Singapore. 2. Building on the Enhanced Partnership signed between both countries in May this year, this annual meeting ...
A Bill to improve the court system’s response to sexual violence has passed its first reading in Parliament today. Justice Minister Andrew Little says the Sexual Violence Legislation Bill will reduce the trauma sexual violence complainants experience in court, while maintaining defendants’ fundamental rights and making sure the trial process ...
Streamlined payment practices are a step closer for Kiwi businesses with the formal launch of New Zealand’s e-Invoicing framework. Small Business Minister Stuart Nash says the government has now established the structure to enable automated and direct data exchange between the accounting systems of buyers and sellers. “The move to ...
Another 51 quarantine officers and four new biosecurity detector dog teams will help protect New Zealand from invasive pests and diseases this summer, says Biosecurity Minister Damien O’Connor. “The Government is delivering on its commitment to strengthen New Zealand’s biosecurity system and support our valuable primary sector “New Zealand’s flora, fauna ...
A new report has found New Zealand’s space sector contributed $1.69 billion to the economy in the last financial year and employs 12,000 people, Minister for Economic Development Phil Twyford announced today. The report by Deloitte was commissioned by the Ministry of Business, Innovation and Employment and shows New Zealand ...
Judge Coral Shaw has been appointed as the new Chair of the Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions, Internal Affairs Minister Tracey Martin announced today. "Judge Shaw, who is currently one of the inquiry commissioners, is extremely well qualified for the ...
Since the death of of Grace Millane, a visitor to New Zealand, last year, countless emotions have been stirred. The trial of recent weeks will have returned those to the surface. In this post, updated from an earlier version published in December, we offer some suggestions on how to channel ...
Source: The Conversation (Au and NZ) – By Elise Bant, Professor of Law, University of Melbourne The news that Australia’s anti money-laundering regulator has accused Westpac of breaching the law on 23 million occasions points to the prospect that powerful members of corporate Australia are still behaving badly. This despite ...
A jury at the Auckland High Court has this evening unanimously agreed a guilty verdict against the 27-year-old charged with the murder of Grace Millane. He is remanded in custody until sentencing on February 21 next year. The decision brings justice for Grace’s family. But in the course of the ...
Associate Minister of Housing, Hon Kris Faafoi, has today visited the first state houses to be completed in the Kāinga Ora Mangere Development. Located on the corner of Ventura Street and Patete Lane, 15 brand new, healthy homes were completed this ...
White Ribbon Day is on Monday 25 November . Communities and organisations will be holding events all over New Zealand focusing on the elimination of men's violence towards women, and sharing the CHALLENGE THE #UNSPOKEN RULES collateral on their ...
Like it or not, plant-based meats are coming to a burger near you. Does this spell the end for animal agriculture, or just a shift in attitudes?This fake meat business might seem like a hot new trend, but China has been doing it for 1000 years or so. Mock meat, ...
Hidden in the deep bowels of the internet is an episode of television too good to be true: Tipping Point Lucky Stars, featuring the geniuses of The Chase. Tara Ward watches the crossover episode of your TV dreams. The world is filled with unexpected joys, and discovering the episode of Tipping ...
Source: The Conversation (Au and NZ) – By Andrew Bartlett, Associate Lecturer Pharmacy Practice, University of Sydney Some people find managing their medication difficult at the best of times. But in an emergency, like a bushfire or cyclone, this can be harder still. As catastrophic bushfires burn across Australia, here’s ...
Source: The Conversation (Au and NZ) – By Michael Douglas, Senior Lecturer in Law, University of Western Australia At his Wednesday address to the National Press Club, Attorney-General Christian Porter said the federal government is pursuing “immediate” defamation law reform. The announcement seemed a bit odd, as defamation is a ...
The only published and available best-selling indie book chart in New Zealand is the top 10 sales list recorded every week at Unity Books’ stores in High St, Auckland, and Willis St, Wellington.AUCKLAND1 #NoFly by Shaun Hendy (Bridget Williams Books, $15)“I was flying as if I didn’t believe in climate ...
Are ministers in Jacinda Ardern’s coalition beginning to live in a dreamworld of their own, distant from the one where ordinary New Zealanders live? In Parliament, in answer to patsy questions from their own backbenchers, they congratulate themselves on their extraordinary ( as it seems to them) achievements. They appear ...
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra [embedded content]University of Canberra Vice-Chancellor Deep Saini discusses the Westpac scandal with Michelle Grattan. They then delve into the government’s recent changes to the robo-debt program, and Scott Morrison’s announcement that the government will be ...
What, for example, is a pitchfork wrapped in tinsel doing over there, leaning up by an umbrella? Toby Manhire writes a speculative article.A tumultuous week for Winston Peters and his New Zealand First Party has seen story after story raise troubling questions around donations. He’s not happy about it.What do ...
Source: The Conversation (Au and NZ) – By Brendon Hyndman, Senior Lecturer in Personal Development, Health & Physical Education / Course Director of Postgraduate Studies in Education, Charles Sturt University In a study published in The Lancet today, we find out how 1.6 million adolescent school students from across 146 ...
The Otago Fish and Game Council supports Environment Minister David Parker’s decision, especially his directive that Mining Rights won't be extended beyond the 2021 deadline provided in the RMA. ...
Source: The Conversation (Au and NZ) – By Lisa Marriott, Professor of Taxation, Victoria University of Wellington A Court of Appeal decision in New Zealand set a precedent last month, allowing offenders to argue their drug addiction should be considered a mitigating factor. Methamphetamine dealers who can prove their personal ...
It was not a great week for NZ First - stuff that Prince Andrew would describe as conduct unbecoming of a political party, but which is very much becoming of NZ First. James Elliott gets slush fund, secretive and coterie all in one sentence about Winston Peters. ...
Just notifying that you have prohibited firearms or parts is not meeting your legal obligations, say Police who urge firearms owners to hand in their items now. ...
A new poem by Belfast-based poet J. Taylor Bell.the other day i witnessed a man seize with epilepsy in the produce sectionthen the bottom fell out of the plastic bag on the long diaspora between self-checkout and the deserts of the kitchen counter i felt like napoleon the morning after ...
We wonder if we were supposed top be gobsmacked, consternated or otherwise thunderstruck by the headline we encountered at the top of page 16 in our Dominion-Post today. “Fracas in Parliament,” it bellowed in a truncated version of the headline that can be found on the same report at Stuff. The ...
From academia to activism to media, Asian women are often ridiculed, overlooked and dismissed. Helen Yeung talks to Asian New Zealand women about the everyday racism they face – and how they’re fighting back.Last year, I was at the launch of an academic journal which included my essay on East ...
The Provincial Growth Fund is putting $3.16 million towards building two wind turbines on Rakiura / Stewart Island, where electricity is at present produced by diesel generators. ...
The enduring crisis of child poverty in Aotearoa New Zealand must be addressed with greater energy by government, the country’s professional body for social workers said today. ...
This week's biggest-selling New Zealand books, as recorded by the Nielsen BookScan New Zealand bestseller list and described by ReadingRoom literary editor Steve Braunias. ...
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra Anthony Albanese puts a “productivity project” at the centre of his economic agenda in the second of his “vision statements”, which seeks to further distance him from the Shorten era. “Productivity is the key to ...
Editor’s Note: Here below is a list of the main issues currently under discussion in New Zealand and links to media coverage.New Zealand Parliament Buildings, Wellington, New Zealand.Today’s content by Dr Bryce Edwards.NZ First Matt Shand (Stuff): ‘I am the dark shadow of NZ First’ – what ...
Credit Union Baywide, trading as NZCU Baywide, New Zealand’s largest customer owned credit union, has acquired Co-op Money NZ, the supplier of core banking services and support infrastructure to some of the country’s credit union sector. ...
New Zealand leaves Australia for dust on internet speeds and our children are practically born using fibre, but major challenges lie ahead, writes Rohan MacMahon.Congratulations, New Zealand: three quarters of you now have ultra fast broadband (UFB).This week Chorus hosted an event at Parliament to mark the completion of Phase ...
The Minister for Pacific Peoples Aupito Tofae Su'a William Sio is advising Samoan families planning on going back to the islands for Christmas to take precautions against measles. ...
Source: The Conversation (Au and NZ) – By Rachael Helene Nolan, Postdoctoral research fellow, Western Sydney University Why does wood crackle in a fire? – Rocco, age 6 (nearly 7!) Hi Rocco, that’s a great question. I love sitting in front of a fire, listening to it ...
Source: The Conversation (Au and NZ) – By Ihsan Yilmaz, Research Professor and Chair in Islamic Studies and Intercultural Dialogue, Deakin University The political influence of the far-right, along with a more salient national security agenda, has spurred a growing anti-Muslim sentiment and deep social division in Australia. In fact, ...
Source: The Conversation (Au and NZ) – By Philippa Martyr, Lecturer, Pharmacology, Women’s Health, School of Biomedical Sciences, University of Western Australia You might remember how Gwyneth Paltrow’s health and well-being website Goop was selling “medical” products with no proven measurable health benefits. Decluttering expert Marie Kondo may be going ...
Source: The Conversation (Au and NZ) – By Linda Newman, Associate Professor, University of Newcastle Many parents and educators agree children need to take risks. In one US study, 82% of the 1,400 parents surveyed agreed the benefits of tree-climbing outweighed the potential risk of injury. Parents cited benefits including ...
Source: The Conversation (Au and NZ) – By Julie Lawson, Honorary Associate Professor, Centre for Urban Research, RMIT University In the year since the Australian government created the National Housing Finance and Investment Corporation (NHFIC), its bond aggregator, AHBA, has raised funds for affordable housing providers, allowing them to refinance ...
Source: The Conversation (Au and NZ) – By Naomi Soderstrom, Professor of Accounting and Deputy Head of Department, University of Melbourne Sydney is currently blanketed by smoke haze from severe bushfires that have burned through New South Wales. Air pollution levels on Thursday reached hazardous levels for the second time ...
Source: The Conversation (Au and NZ) – By Richard Holden, Professor of Economics, UNSW Australia’s system of childcare support is pretty good. It ensures high-quality care is provided to a large number of children, it is targeted through income-based subsidies, and it is attentive to the needs of disadvantaged children ...
Source: The Conversation (Au and NZ) – By Camilla Nelson, Associate Professor in Media, University of Notre Dame Australia Mary Ann Evans took the pseudonym “George Eliot” because she wanted to be taken seriously as a writer. Other female authors – Maria Edgeworth and Jane Austen, for example – had ...
Shane Jones downplays NZ First Foundation scandal by slamming 'despicable' media; and Green MP lambasts bill allowing overseas agents to carry otherwise-illegal guns in NZ. ...
New Zealand First has upped the ante in the saga over its mysterious foundation, with party leader Winston Peters' long-time lawyer Brian Henry threatening to sue National for $30 million. ...
Good morning and welcome to The Bulletin. In today’s edition: Focus shifts to lawyer in NZ First Foundation scandal, Canterbury hail smashes crops, and tobacco companies cynically raise prices under tax cover.
Around this time last year, a party leader had just brazened out a week of scandal, much of ...
A report from the NZ Disability Support Network has laid bare a funding crisis impacting every level of the sector. Here, Rachel Lodewyk, of Gisborne, says the health system is failing but parent-led trusts are offering solutions in desperate times. ...
With emissions still rising, climate geo-engineering requires debate. But political researchers fear people are falling into the same left/right tribalism that's long plagued climate politics. ...
Our kinship with plants is etched out in the mythology on which our societies are founded, and in the web of life it is a scientific fact that we are indeed close kin to the plant kingdom. So why do we not live like we are, asks Matt Hall.There are ...
There’s been outrage since it was revealed that up to one in five final year medical students at the University of Otago falsified their overseas placements by spending portions of that time travelling instead. But GP registrar and former Otago medical student Toby Hills finds himself empathising deeply with his ...
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra Scott Morrison’s government is heading to the end of 2019 amid a debate about its economic judgement and with a number of substantial policy moves started but not completed. Morrison this week delivered to an ...
Newsroom's major investigations into Oranga Tamariki and a Fijian resort development have won us the award for best current affairs programme at the NZ TV awards. ...
The government is facing criticism that it is not doing enough, fast enough to raise people out of poverty. But Minister Carmel Sepuloni says her ministry are working as quickly as possible. ...
Source: The Conversation (Au and NZ) – By Peter Christoff, Associate Professor, School of Geography, University of Melbourne A new United Nations report shows the world’s major fossil fuel producing countries, including Australia, plan to dig up far more coal, oil and gas than can be burned if the world ...
New Zealand First leader and Deputy Prime Minister Winston Peters with Governor General Dame Patsy Reddy and Prime Minister Jacinda Ardern.New Zealand is officially one of the least corrupt countries in the world. But it could be argued that our political system is still biased in favour of the ...
Source: The Conversation (Au and NZ) – By Scott Hamilton, Strategic Advisory Panel Member, Australian-German Energy Transition Hub, University of Melbourne The possibilities presented by hydrogen are the subject of excited discussion across the world – and across Australia’s political divide, notoriously at war over energy policy. Read more: Hydrogen ...
The Real Pod assembles to dissect the week in reality television and real life, with special thanks to Nando’s.We’re still buzzing after the rip-roaring success of the Corny Christmas party this week and we won’t even let a rogue earwig in the studio dampen our spirits. There’s a lot of exciting ...
Source: The Conversation (Au and NZ) – By Heidi Norman, Professor, Faculty of Arts and Social Sciences, University of Technology Sydney Aboriginal and Torres Strait Islander readers are advised this article contains images and names of deceased people.Review: Linear, Powerhouse Museum, Sydney The value of Australian First Peoples’ scientific ...
Sam Brooks reviews the latest generation of the Pokémon games which finally hits the big-ish screen.“I love Pokémon but I wish I could play it on my TV.”I’ve been playing Pokémon for 20 years and that’s been the main thing I’ve heard from my fellow Pokémon friends/fans. The games have been engrossing, ...
Source: The Conversation (Au and NZ) – By Helen Dickinson, Professor, Public Service Research, UNSW National Disability Insurance Scheme (NDIS) Minister Stuart Robert this month announced a number of “practical changes” to the scheme. Acknowledging the NDIS is not consistently living up to expectations, he said these improvements will put ...
The trustee of the New Zealand First Foundation and Winston Peters' personal lawyer has threatened a $30 million lawsuit against a National MP, in the latest twist of the donations scandal. ...
The Asia-Pacific Economic Cooperation (APEC) is a regional economic forum based in the Asia-Pacific Region. New Zealand will host APEC 2021 in November 2021, with related events running for a year from December 2020 until November 2021. ...
Business is Boring is a weekly podcast series presented by The Spinoff in association with Callaghan Innovation. Host Simon Pound speaks with innovators and commentators focused on the future of New Zealand. This week he talks to Dr Brian Ward of soft-tissue repair company Aroa.Dr Paul Callaghan, who inspired Callaghan ...
‘Become a nation of savers’ 
The Environment Committee has called for submissions on the Climate Change Response (Emissions Trading Reform) Amendment Bill. Submissions are due by Friday, 17 January 2020, and can be made online at the link above. The bill makes a number of changes to the ETS, including linking it to the carbon ...8 hours ago
Coasters Turn Out In Droves: It’s precisely the widening gulf between those with actual experience of things like guns, chainsaws and drilling machines, and those who regulate their use, that accounts for the angry crowd at Greymouth’s Messenger Park on Sunday, 17 November 2019. In the rarefied atmosphere where decisions ...17 hours ago
There are perennial arguments about the circumstances of the assassination of President Kennedy in 1963, and in particular whether more than one shooter is required by the evidence (such as the Zapruder film). Those who know little about physics frequently claim that the sharp backwards motion of JFK’s head as ...22 hours ago
The Council of Disobedient Women has learned that the Prefect of Aro Valley has been promoted to a new role with the blessing of the Pope of Wellington. Softy Jejune Parson has been appointed Mother Superior of Woke Wellington for the work she has been doing calling out heretics, ...2 days ago
On both sides of the Atlantic, some purportedly “contentious” and “difficult to deal with” leadership contenders to lead the US and UK, as President and Prime Minister respectively, seem to have thrown a few spanners into the works of the normal messaging most are used to hearing constantly. Except they’re ...2 days ago
It has been revealed that firing ranges used by the NZDF while deployed to the Provincial Reconstruction Team (PRT) in Bamyan Province, Afghanistan, contained unexploded ordnance that caused numerous deaths and injuries after the NZDF withdrew the PRT in April 2013. In 2014 seven children were killed when an unidentified ...3 days ago
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Because, as I have previously pointed out, the people in receipt of the bulk of the tax cuts are more likely to use them to pay down debt and increase savings. At the expense of the other 80% of taxpayers and any short-term fiscal stimulus.
Those tax cuts go to everyone. National dropped the larger tax cuts that would have targeted higher income earners.. Tax cuts always benefit the people who pay the most tax. Personally I think that is fair. [we’ve been through this time and again. look at the archives under ‘tax’. Cuts don’t have to favour the rich and they definitely don’t have to get infinitely larger as income rises. Labour’s cuts, the current legislated ones, cap out at 80K, National’s ones just get larger and larger the richer the taxpayer is, and National’s cuts for ordinary Kiwi’s are smaller than Labour’s. SP]
As for Kiwisaver. An option to save 2% of your weekly income is fair. And the employer giving extra I never liked and think its still too harsh. Where National went wrong was in making the changes where the income cut in to how much the government kicks into the scheme. Hopefully, they make that change when they legislate.
Well he does have a point, nothing like the state abandoning all responsibility to its citizens to to encourage self-reliance. Just a bit of a shame the people needing the most ‘incentive’ don’t actually have any money to save.
The tax cuts targeted the average taxpayer.
No they don’t. Forty percent of the cash goes to the wealthiest ten percent of taxpayers, while anyone with a family earning less than $44,000 a year pays more tax than they would have under Labour.
Oh, and any anyone in Kiwisaver is worse off, no matter what their income.
http://norightturn.blogspot.com/2008/10/who-benefits-from-nationals-tax-cuts.html
I did say average. And why link me to two left blogs (one this very blog) who are clearly partisan when it comes to tax cuts and thus are not balanced.
[the numbers in the links are accurate. If you’re arguing they’re not just because the sources are leftwing, I hope you have some evidence. SP]
Ginger: why do you persevere with this practice of saying things that happen to be wrong, and then when you’re provided with evidence proving you’re wrong you claim bias, or, partisanship?
As Tane pointed out – quite succinctly I might add – “Forty percent of the cash goes to the wealthiest ten percent of taxpayers, while anyone with a family earning less than $44,000 a year pays more tax than they would have under Labour.” Both the links he provided provide you with are only “biased” stylistically, the numbers provided on both links come from National’s tax policy. If the same numbers were on a site like Kiwi-blog the writing around it would show “bias” towards right-leaning ideology. My point is: look at the numbers, not the rhetoric surrounding them.
All the recent history (several decades) shows Kiwis SPEND money and don’t SAVE it.
National cutting the saving capacity of Kiwisaver is no help to saving.
With interest rates expected to head to 4% to subsidise all the debt addicts….tell me again why people would save?
I’m not seeing it.
Actional giving tax cuts to the rich? My god, what is the world coming to.
In other news: China is a communist country that everybody wants as a friend and Russia does not hold fair elections and is about to change their constitution to let Putin back in. Such is the world.
I am going to make such a mint off them this year it is obscene. And I would give it all away to have labour/green in power right now. Go figure.
I like your input here Ginger. A lone, (semi 🙂 ) rational right voice in a sea of lefties.
I don’t agree with anything you say, but I figure that provide us something worth being annoyed by and typing about. Good on you!
Yeah, please don’t leave us Ginger, I don’t know what we’d do without you and those of your ilk. This site would be a left-wing hug-fest if people like you weren’t around.
Clearly not everyone is going to be able to save because some at the bottom need all their available income to meet their living needs. Kiwisaver wasn’t a complete fix for this, at the lower end of the income scale people were still unable to afford it, especially with a 4% entry. I’d prefer to see Kiwisaver reduced to a 1% (or even lower) entry to enable those at the bottom to join in. Employers shouldn’t be forced to match contributions, it makes it harder for those struggling just to pay the staff they have and raises the risk of having to lay off staff to keep their business running.
I think we need some sort of cap on how much the government contributes though, it can’t just be an open chequebook.
Tim: 1% is useless for retirement saving….unless you live to be 150 and don’t retire until you’re 120.
The tax relief being touted by National is NOT the solution to this problem for all its cost. In rough summery: it is a short-term and therefore short sighted solution to a long term problem. It will also leave NZ in a worse debt situation than before with a very low stimulatory effect due to the income bracket it targets. (i.e. High income bracket tax relief such as the “bush tax cuts” have the lowest stimulatory return)
See the graph at the end of this blog entry:
http://www.ourfuture.org/blog-entry/2008104427/tax-cuts-ineffcient-stimulus
Kiwisaver was a long-term solution the core debt problem in NZ which is compacting this crisis on NZ and NZers who have taken on too much debt. Of course kiwisaver would not be a complete solution to this problem either – but it sure does help. In 10 years once savings have grown and compounded, it might be renamed “economy saver”.
I would have preferred more ingenious and targeted initiatives. Utilising industries that have or will have spare capacity – such as the building industry. More specifically using them to increase the growth potential of our country.
No offense but my first reply could have rebutted without editing inside.
The problem is not with the data in either of those left-wing blogs. Its the context you put them in. You say the tax cuts are taken away from lower income people to support the higher income. But tax cuts do that. Labour’s tax cuts do that. When you earn 80, 000. You don’t pay that 80, 000 dollars at the top rate. You pay a proportion at the top rate. Even if you said no tax in the first 20, 000 its still the taxpayers who earn the most money. Second, the tax cuts targeted average income earners. Its clear in the data that is what happened. Yes higher income earners get more benefit from the tax cuts. But that is because they pay the most taxes and they only pay a proportion of tax at that top rate. The rest is taxed at what other income earners are paying.
If it was really a tax cut for the rich. The top tax rate and threshold would have dramatically dropped. Ie. 30 cents for earners $50, 000+. National’s plan originally was to see a bigger tax cut for the rich. But because of economic conditions that was changed so they insured AVERAGE earners would get a tax cut. So while with National’s plan higher income earners get the most benefits. That is inherent in how tax is paid in New Zealand in the first place.
You can make your argument with families. That is a fair assessment. But National’s tax cuts benefit most income earners. Always higher income earners benefit from tax cuts more than others. But the tax cuts still delivered to the average worker. Thus was targeted to the average worker.
—-
Oh and thank you vinsin and Mr Magoo its nice to be insulted. You can say a lot about me but I typically don’t go round insulting people and its a pity you can’t do the same.
Oh and thank you vinsin and Mr Magoo its nice to be insulted. You can say a lot about me but I typically don’t go round insulting people and its a pity you can’t do the same.
Actually it was an honest compliment to an opponent about being stoic in an obviously hostile environment. But I guess you are so used to the insults on this site that you missed it?
Regardless. On to my disagreements with your point of view:
At the end of the day, tax cuts give cash back to workers. They do not have to be given back proportionately and in fact can be given in a almost completely flat across the board way. (e.g. first 20K tax free)
The effect of that policy on anyone earning more than 20K is that they ALL (i.e. almost all in full time work) get the same amount of tax relief. No differentiation at all.
The opposite scenario is to reduce the tax rate by a flat amount. (i.e. all tax reduced by 2% at all levels)
The obvious effect of this policy is to give the richest people a disproportionate amount of the total tax relief. This is because most people in NZ do not actually earn a heck of lot compared to the top 5-10%. (i.e. we are talking medians here, not averages!)
There are all sorts of interesting policies in between. Working for families being one of the most innovative I have seen in that the poorer and more “child strapped” you are, the more you get.
National have opted for a solution more towards the “2% for all” scenario, except that they offset the lower income people by cutting a few other things they may have been entitled to. Their package is quite complicated and as far as I can tell was mostly based on gettimg votes from those not covered by working for families and kiwisaver.
Now you may make an argument over whether the wealthy deserve more cash than the average person during this crisis because they “deserve it more”, but I would imagine that 70% of NZ would not agree with you.
I completely disagree with tax cuts as a solution to this problem. Tax cuts to anyone earning over 70k, triply so. I would remind everyone that we already got a tax cut, so a second is just not sensible at the moment. (some missed out, but the idea is that a cut stimulates growth, not make single and/or rich people feel good)
As I mentioned earlier, I would prefer that the money be spent generating jobs and smart infrastructure investment.
ginger. you’re right you can’t argue with the numbers, and the numbers for nationak’s cuts are 40% of the money going to the wealthiest 10%.
The major difference between national’s tax cut and labour’s is national will cut the top rate by 2% and not raise the threshold for the bottom 12.5% rate. Tax cut packages don’t have to be designed like that
so this is a national special huh sp!
You have to give it to him! – Ginge is persistent, or thick, or both!
How is it possible to NOT see that the tax package promised by National rewards the top income bracket AT THE EXPENSE of those on low incomes – the very ones that will be affected the most by the stricter mortgage criteria introduced by the Banks? And now English has the AUDACITY to somehow claim it, as if its a good thing and the result of National’s prudent management of the economy already!
Low income earners pay very little tax. Low income families are generously supported by working for families. Low income earners get a tax cut. Its not at the expense of them as they are supported several ways via state housing, accommodation supplement etc etc etc. Tax cuts will never work for the truly low income workers. They can only benefit via welfare transfers.
The mortgages are a whole separate matter. Labour didn’t do well in this area either. And I can’t see how low income earners could even come up with 5% deposit on a mortgage.
the sprout,
personal interest.. re your wee picture at top right comments.. is it a brussels sprout? I ask because recently the seeds I planted came up with the look of yours but rounded leaves and tips.. and I’m wondering just what I have got.. someone having mentioned they look like broccoli..
Low income earners pay very little tax
Yes, because they also earn very little. They also have a much larger propotion of their income devoted to “keeping alive and well” than wealthy people.
state housing, accommodation supplement
Most families do not receive these or live in a state house. Shocking, I know. The waiting list for state houses is 3+ yrs.
http://www.hnzc.co.nz/hnzc/web/rent-buy-or-own/rent-from-housing-new-zealand/waiting-list.htm
Over 4000 families in significant housing need or greater. Thats of those who bother to apply…
Tax cuts will never work for the truly low income workers.
The difference they make is far more pronounced for low income earners than for the wealthy. Come on now, you really think that 60/wk for someone on 150k per year is going to impact them more than 20/wk for someone on 30k per year?? Pleeease.
But I do agree with you on that point! Tax cuts are a “block of cheese” joke and will not really serve the public good in the end. As much as we like cash in our hand, it has a history of not being as useful to us as we had hoped compared to healthcare, savings, etc.
“And I can’t see how low income earners could even come up with 5% deposit on a mortgage.”
Welcome home loans. More state houses. Shared equity.
I am sorry, your argument here simply does not fly. In fact it barely stands up at all.
State Houses. Labour is opposed to selling state houses to tenants. Welcome home loans has numerous problems. The fact is there are very few houses that fall under its criteria. Shared equity is very limited and you still need to raise 5% deposit.
Haha, nice one, Ginge. All those families on benefits who don’t qualify for Working for Families are clearly a figment of my imagination.
Please, please respond with something about “they should stop spending the dole on booze and drugs”, I like that one.
Once again the Nats show how effective saying the agreeable things to certain audiences is. I dont think they can commit to saying the same thing time and time again.
Except: “Fresh” and “Ambitious” They sure like saying that.
QoT,
Please, please respond with something about “they should stop spending the dole on booze and drugs’, I like that one.
If I recall the HES breakdown from Statistics New Zealand correctly, it shows that lower income households spend proportionately more of their income on cigarettes and alcohol than the national average… take from that what you will.
QoT – Why are you talking about beneficiaries. No one is talking about beneficiaries. The only way they make more money is if their benefits rise or they get a job.
It amuses me that when people argue people who pay less tax should be given back more of it. 12% of the working age population in New Zealand pay 51% of the personal tax take. So who is being dealt a disproportionate hand here?
Gustavo,
“12% of the working age population in New Zealand pay 51% of the personal tax take. So who is being dealt a disproportionate hand here?”
Need more info. What percentage of NZ’s total wealth does that 12% control, what % of national annual income do they earn, etc and so on and so forth.
In any case, who here is arguing that the rich don’t pay a higher proprtion of the tax take?
Right ginge, because beneficiaries don’t pay tax … OH WAIT THEY KINDA DO, just like Real People.
Phil – as soon as you define “lower income households” and state the actual proportions involved, it’s just so much “Poor people are stupid and deserve to not be able to afford food for their children”.
Yes they do pa tax indirectly true. But I still struggle to see your point about beneficiaries. Since we’re talking about tax cuts for those who pay income tax.
Pascal. I do not have those figures at my fingertips, and I believe they fall outside the study’s parameters. But income tax levels should be set on the basis of income, and not wealth.
ginger. benefit payments are taxable income, you pay income tax on them
What Mr Magoo said on the first pass… hit it in one.
We seem to be damned to at least 3 years of one-dimensional quick fix approaches to long-term systemic issues.
Yikes – I feel for Ginger. It’s nice to get a little heated debate going, but lets be rational.
1. Low income families earn less, therefore spend proportionately more on consumption. Therefore they save less than those on higher incomes. This is always going to be true…can anybody suggest a way out of this?
I agree with Tim – maybe the threshhold for Kiwisaver should be dropped to 1% – yes its a tiny amount, but something is better than nothing no? 4% is really high for somebody on the average wage or lower…and we should be encouraging saving at all levels of society.
2. Beneficiaries pay tax through GST – consumption taxes and yes they don’t benefit from income tax cuts, seeing as they do not technincally work and pay personal income tax. I’m sorry, but that seems fair to me. If an individual is on the unemployment benefit I feel they shouldn’t receive the same advantages as somebody who works. Those on sickness or invalid benefits are an entirely different story. Maybe the problem is in lumping different types of beneficiaries into one category…when they all have different needs and incentives.
3. The response to National’s tax cut package was that the rich are benefitting more than the average kiwi…
The way I see it is that if you have natural talent or you worked your butt off to get a job that pays highly, why should you be penalised for that? Most of the people I know that earn over $60,000 have either spent a significant amount of time studying or working their way up to get there. They spent time and money to get where they are and to maintain that position. Why begrudge somebody for having money?
Also – note the difference between income and wealth. Two very different things…!
Lastly, what constitutes an average kiwi? Moreover define ‘rich’…
Steve Withers, yes 1% makes for a poor retirement plan but is nonetheless savings and in that respect is better than saving 0%. Also these people will receive superannuation.
Additionally Kiwisaver funds can also be used towards a house deposit (and contributions can be funnelled to mortgage payments) and in that respect the 1% could be more useful.