Brits aim assistance to the low income

Written By: - Date published: 8:23 am, March 30th, 2009 - 22 comments
Categories: articles, tax, uk politics - Tags:

The irony of this article struck me when this week the well-off get the biggest boost to their wallet. From the Guardian

:

The chancellor is preparing to channel cash to poorer families in his budget as part of a mini-fiscal stimulus to kick-start the economy and protect the vulnerable. Senior cabinet figures are backing a campaign by more than 110 Labour MPs, including some ministerial aides, to top up benefits or the tax credits paid to low-income parents. The move comes as it emerged that Gordon Brown is trying to broker a £100bn deal at this week’s G20 summit to stop the world’s poorest falling victim to the banking crisis by extending loans and aid to developing countries that are at risk of poverty, disease and conflict. In an open letter published by the Observer today, the MPs argue that giving tax cuts to the middle classes may simply see money tucked away in savings accounts, but giving cash to those who really need it ensures they will spend it.

Remind me again why we are spending the most money on those higher up the food chain? And if you feel a little unsure out the wisdom of this approach does this article (from the SSTimes) make you want to reassess?

Record numbers violently abused South Auckland babies have been hospitalised with severe injuries in recent weeks, shocking police and child welfare agencies and leading to speculation that the economic recession is contributing.

Let’s hope the upcoming budget takes some bold steps to help those most in need – our country’s children (and can be the ones who are hardest to reach).

22 comments on “Brits aim assistance to the low income”

  1. BLiP 1

    The reason National is spending the most money on those higher up the food chain (I assume you really mean thouse further up the income bracket) is that the rich have captured the National party and have sent down the instructions for the implementation of the hidden agenda to accelerate the transfer of wealth from the poor to the rich using “whatever it takes”.

    Geddit?

    • r0b 1.1

      the rich have captured the National party

      They didn’t need to “capture” it, they founded it.

      Great post Dance, interesting contrast with England. I haven’t much time for their “New Labour”, but they seem to have got this right.

      • BLiP 1.1.1

        They didn’t need to “capture’ it, they founded it.

        Puts paid to the suggestion National has some how transmogrified or that John Key had even a skerrick of concern for his beloved under class. More fool the voters.

    • Bill 1.2

      But that’s not just National, Blip, not just NZ and not just money that is being transferred. Here’s the opener from a lengthy, but well worth reading article from Matt Taibbi from rollingstone (link below)

      “The global economic crisis isn’t about money – it’s about power. How Wall Street insiders are using the bailout to stage a revolution.”

      According to Taibbi, the Fed has been ‘captured’ by the bankers. Meanwhile, we have a banker as PM. And Gordon Brown as a friend of the poor? Highly bloody unlikely!

      http://www.rollingstone.com/politics/story/26793903/the_big_takeover

      • BLiP 1.2.1

        Top link, thanks Bill. Confirms my fears that New Zealand voters were hoodwinked by National. Fingers crossed its just three years.

        • Bill 1.2.1.1

          Wish I could be so optimistic!

          I really don’t think it matters too much which party is running government. Labour were right of centre and, to give them the benefit of the doubt, probably thought they couldn’t move left given the larger environment they had to operate in.

          If Taibbi is correct, then by my reading we are on the cusp of an era of Corporatism writ large. National governments will then be more or less a side show of ever diminishing relevance. ( A process that has arguably been unfolding for some time now.)

          At the moment, financiers and their company’s are squabbling over who should assume ascendancy from the current bail out/ take over dynamic.

          Meanwhile, we are nowhere to be seen.

          Okay. There is the G20 demo’s and there is, depending on your views, Venezuela offering another way.

          Venezuela tends to be ignored when not being vilified ( so, no readily available info for people to act on) and G20 protests will count as nought if they do not act as a catalyst for a broader and deeper momentum coming from the streets. In the face of msm gearing up to give mainly negative coverage of the G20 protests….just read the British newspaper reports so far…. and the predilection for such protests to not translate into anything beyond their own immediacy anyway….

          Hope I’m being unduly pessimistic.

          • Joseph 1.2.1.1.1

            Just on the subject of G protests – I have never actually been informed of what they were about by news media. It has always been about riot squads and people throwing molotov cocktails.

          • BLiP 1.2.1.1.2

            I’m with you – I don’t hold out much hope for the long term prospects of the working class and can see corporate gulags springing up already – the rich have certainly decided they don’t want to be part of the community with their own gated enclaves.

            I also have a growing affinity for what Rave says – perhaps there is hope if the workers rise up and seize the means of production . . .

          • Bill 1.2.1.1.3

            The reply option has dropped from the bottom two comments, so I’m not sure where this is going to insert itself in.

            Anyway. In response to Blip’s growing sympathy to Rave’s revolutionary rhetoric.

            I agree there is no future in Social Democracy. Been thinking that for (wow, how time passes) 25 years now. All I really disagree with Rave about is the concept of Democratic Centralism. Lots of signals going up or towards the centre, possibly getting vetted along the way, and the informed centre sending commands back down to the (relatively) uninformed peripheries isn’t democratic.

            Taking over production and distribution is the easy bit. Organising production and distribution so that it is democratic, effective and avoids capture is the hard part.

          • Bill 1.2.1.1.4

            It has always been about riot squads and people throwing molotov cocktails

            You need to read these two so called news pieces Joseph, from the same newspaper, about the same incident…it’s just bloody classic.

            http://www.independent.co.uk/news/uk/crime/terror-probe-five-could-have-targeted-g20-1657600.html
            and

            http://www.independent.co.uk/news/uk/crime/activists-arrested-under-terrorism-law-1658031.html

  2. Santi 2

    Gordon Brown, really? he’s on his way out so this can only see as a desperate attempt to stay in power (sounds familiar, doesn’t it?).

    The Labour Party is toast.

  3. Another great headline but I wonder what the reality is.

    The so-called “rich” in NZ still pay a much higher rate of marginal tax and average tax in 2009 than they did 9 years ago. For obvious reasons, the post ignores the fact that in the same time WFF has also been introduced.

    I’d be interested to note what tax cuts have been introduced in the UK over the same period.

    It’s funny that the demands here to do what the US and UK do only seem to happen when you agree with their policies 🙂

  4. gomango 4

    So i have just read the kiwiblog story (and table) showing the effect changes, and compare it to this story. Can anyone actually explain the comment thats bandied around “most people are worse off” (not in this post, but more generally). I genuinely don’t understand – assuming farrar’s table is correct, earners on 20k or below see no change, everybody else is better off. Is it as simple as that?

    I don’t want to argue the merits of who gets what – just want to be clear on what the frame of reference is.

  5. gomango 5

    Thanks for the links but not really what i was asking for .

    How about this question – is that table correct? If it is incorrect, does anyone have one that is correct?

    I think you are arguing National versus Labour – I am just arguing April versus March.

    Is the unqualified statement “worse off than what would have been the case had Labours tax cuts been implemented” rather than just “worse off”. (Of course that is on the assumption Michael Cullen would have delivered those – we have seen that delivery not happen over previous elections.) But thats not the issue I’m trying to discuss. Just trying to verify that the KB table is correct ie people (on incomes > 20k, not in receipt of WFF) are better off in April versus March?

    • Pascal's bookie 5.1

      Labour didn’t win the election, so theorising about what MC might’ve done doesn’t matter. There was legislation passed bringing Labour’s tax cuts into effect. That was the law. If KB’s table doesn’t compare National’s new regime with that legislated labour regime, but rather with current rates (ie not counting Labour’s changes), then he is not really describing what National actually did.

      The honest thing to compare Nationals new regime with, is what things would have looked like if National had done nothing. (hint: Labour’s legislation would have come in to effect irrespective of speculations about Cullen, because Labour could not in realty change things, they lost the election)

      So the question might be asked which people are/will be better off next April, based on what National did.

      • Daveski 5.1.1

        PB 10 points for at least trying to defend the indefensible.

        The simple point as GMG points out is that people appear to be better off if they earn more than 20K.

        As you point out, what Labour would have/could have done is irrelevant given they were voted out.

        • r0b 5.1.1.1

          It is by no means “irrelevant” to the huge number of low income earners who are worse off under National than they would have been under Labour.

      • Pascal's bookie 5.1.2

        Daveski. What is it that you think I am defending?

        I’m glad you agree that what Cullen might’ve done is irrelevant. It’s been something that others on the right have been bringing up quite often and like you I think it’s silly. My comment explained why.

        In order to get this appearance that you speak of, does the KB table compare National’s package to Labour’s (which was the law they changed) or does he use the other method, which you agree is silly and dishonest?

        Kiwiblog crashes my dodgy old browser at the moment, so I don’t know….

  6. RedLogix 6

    I think you are arguing National versus Labour – I am just arguing April versus March.

    Well that would be nice if thought you were being sincere, but existing tax cuts were passed into law last year that would have come into effect this April. (Speculation to the contrary is just that…. idle speculation.)

    However new legislation has been passed recently that changes that law… the effect of which is that if you are on less than the median income (ie the lower 50% of wage and salary earners)… you will be worse off from April 1.

    See it can be managed without mentioning any red or blue elephants… just don’t look at the butter.

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    2 weeks ago
  • Hard News: Time for a New Deal: 25 years on
    In 1994, I was editing an ambitious street mag called Planet, from a fabled office at at 309 Karangahape Road. The thirteenth issue of the magazine was published in the winter of that year and its cover embodied a particularly ambitious goal: the end of cannabis prohibition.I wanted to do ...
    2 weeks ago
  • Not impressed
    KiwiBuild was one of the Ardern government's core policies. The government would end the housing crisis and make housing affordable again by building 100,000 new homes. Of course, it didn't work out like that: targets weren't met, the houses they did build were in the wrong place, and the whole ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Solar beats coal
    As the climate crisis escalates, it is now obvious that we need to radically decarbonise our economy. The good news is that its looking easy and profitable for the energy sector. Wind is already cheaper than fossil fuels, and now solar is too:The levellised cost of solar PV has fallen ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • A Step Too Far.
    A Crown Asset? For reasons relating to its own political convenience, the Crown pretends to believe that “No one owns the water.” To say otherwise would re-vivify the promises contained in the Treaty of Waitangi – most particularly those pertaining to the power of the chiefs and their proprietary rights ...
    2 weeks ago
  • Where Money Comes From
    Most people would say, no doubt, that they have a pretty good idea of what money is. They live with the reality of money every day. It is what is needed to buy the necessities of life and to maintain a decent standard of living. You get money, they would ...
    Bryan GouldBy Bryan Gould
    2 weeks ago
  • Banned by the Green Party leadership: Jill Abigail on women’s rights and trans rights
    The article below was an opinion piece that appeared in the Spring 2019 issue of Te Awa (the NZ Green Party’s newsletter) and on the Greens website.  In keeping with their policy of hostility to women defending women’s right to female-only spaces, Green bureaucrats have since removed the opinion piece.  ...
    RedlineBy Admin
    2 weeks ago
  • The fallacy of the proximity argument.
    Longer term readers may remember my complaining that, as a political scientist, it is burdensome to have non-political scientists wanting to engage me about politics. No layperson would think to approach an astrophysicist and lecture him/her on the finer details of quarks and black holes, but everybody with an opinion ...
    KiwipoliticoBy Pablo
    2 weeks ago
  • Where We Stood: Chris Trotter Replies To Stevan Eldred-Grigg.
    Joining The Fight: Stevan Eldred-Grigg's argument for New Zealand staying out of the Second World War fails not only on the hard-headed grounds of preserving the country’s strategic and economic interests; and not just on the soft-hearted grounds of duty and loyalty to the nation that had given New Zealand ...
    2 weeks ago
  • Universities back the climate strike
    On September 27, School Strike 4 Climate will be striking for a future to pressure the government for meaningful climate action. This time, they've asked adults to join them. And now, Lincoln University and Victoria University of Wellington have signed on:Victoria University of Wellington has joined Lincoln University in endorsing ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Another constitutional outrage
    Another day, another constitutional outrage in the UK. This time, the government is saying that if parliament passes a law to stop Brexit before being prorogued, they may just ignore it:A senior cabinet minister has suggested Boris Johnson could defy legislation to prevent a no-deal Brexit if it is forced ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Ending dairy in Canterbury
    Environment Canterbury has finally proposed nitrogen limits to stop dairy farmers from poisoning Christchurch's water supply. And naturally, farmers are whining about it:A proposed move by Environment Canterbury (ECan) to protect Christchurch's drinking water by setting tough – some would say, draconian – nitrate reductions in the decades ahead and ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Is National the party of climate arson?
    The Zero Carbon Bill is currently before select committee. While its targets are weak, its a generally sensible bill that promises to establish a long-term framework to guide emissions reductions. But National hasn't made up its mind on whether it will support it - and according to Andrea Vance in ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Experts warn Harold the Giraffe “well past” typical giraffe life expectancy, may not have long
    Dum-de-doo. Children across New Zealand have known him for generations as the lovable giraffe who tells them to exercise, hydrate and not to shove lit cigarettes up their nostrils. But a world renowned giraffe expert says we shouldn’t be getting attached to Life Education’s Harold the Giraffe, as he is ...
    The CivilianBy admin
    2 weeks ago
  • August ’19 – NZ blogs sitemeter ranking
    Image credit: 22 BLOGGERS WITH ADVICE FOR RESEARCHERS AND EVALUATORS, ILLUSTRATED I notice a few regulars no longer allow public access to the site counters. This may happen accidentally when the blog format is altered. If your ...
    2 weeks ago
  • Bye, bye to the collusion lie
    Sums it up, really. ...
    2 weeks ago
  • Opinion: Treat your car by buying extra petrol to snack on while you aren’t driving
    By Mike Hosking. Yesterday morning, I waltzed into work, and as I walked past the drones aggressively typing out news on the computers I’ve repeatedly asked to be moved further away from, I caught a glimpse of the words “climate change”, and noticed that suspiciously they weren’t in condescending quotation ...
    The CivilianBy admin
    2 weeks ago
  • US imperialism, Huawei, racism and imperial anxiety
    by Tony Norfield US political opinion against China has two solid bases. The first is the longstanding racist and protectionist sentiment in the white working class; the second is a more recent anxiety about China’s economic prowess in America’s ruling elite. This article notes some historical aspects of anti-Chinese racism ...
    RedlineBy Admin
    2 weeks ago

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