web analytics

Debt explained

Written By: - Date published: 7:33 am, April 27th, 2011 - 7 comments
Categories: cartoons, debt / deficit - Tags: ,

The same scenario of tax cuts, national debt, and public spending cuts is being played out in New Zealand, Britain and the USA. Here’s the right wing argument in a nutshell…

7 comments on “Debt explained ”

  1. Colonial Viper 1

    The guy wearing the tax cut hat should be in a tuxedo, his limo, driver and cocktail waiting for him in the background.

  2. Herodotus 2

    Tax cuts are valid, when there are substainable structural surpluses. I thought Michael Cullen once said this was the case. Anyway CV our tax system is now a means of attracting voters: decrease your tax and vote for me, or increase their tax so you can get more and vote for me !!!
    How when we have continual current account deficits can we in NZ continual our behaviour the way we have been. The consequence will be continual reduction in what we expect for our living standards. Be this in health, retirement entitlements, health etc

  3. higherstandard 3

    In the current economic climate we should increase taxes and decrease spending.

    When the economy improves we can look at increasing spending and decreasing taxes, fairly simple stuff really

  4. Colonial Viper 4

    I\’d argue that taxes provide the means, but the means to do what? Simply keeping the wheels turning? The fixation on taxes allows both major parties to dodge the obvious question – where are we going as a country, what kind of society do we want to build for the future?

    I ask myself, what is the vision and mission of this Government (or of the next Labour led Govt?) To close the gap? To increase the gap? To keep the gap? To go around the gap? To ignore the gap? Who knows.

    Basically herod. I figure you are right. Fiddle with stuff not to accomplish anything other than to get into power again. (And in National’s case do a few favours for a few mates along the way).

    *Sigh*

    HS – in this economic climate we should increase taxes and increase spending – to get money moving around the economy again instead of having a few people sit on mountains of wealth benefitting no one (not even themselves).

    And also look to discourage drains of funds overseas (funds which disappear largely via all the foreign owned corporations and banks which operate in NZ).

    • Herodotus 4.1

      I am prepared for any response !!!!
      BUT – Nat did have an idea of changing the basis/mix of who and in what fashion taxes are paid. I personnally think that reducing direct PAYE tax was a good thing ( as too much of our tax take is sourced from this means) and by commencing to receive some contribution from those who escape tax from property speculation. There should be as mentioned by you deeper debates on many aspects of life. Should we promote owner/occupier or landlord/tennant relationships, and if owner then disincentivise the later, as one example. But please don\’t fiddel with tax just to get a vote or 2, as there are many wizzz kids who can find loopholoes to escape.
      CV many who had the mountains of $, now appear to have none e.g. Nigel McKenna, Terry Serepisos, and both Dave Hendersons to name a few. And they own the country unpaid taxes

  5. Kevin Welsh 5

    “I ask myself, what is the vision and mission of this Government (or of the next Labour led Govt?) To close the gap? To increase the gap? To keep the gap? To go around the gap? To ignore the gap? Who knows”

    More a case of ‘mind the gap’ (London underground), CV.

    They know it’s there, they just don’t want to get to close to it in case they have to do something about it.

  6. A tax on every financial transaction would be a good start. The current account deficit is largely a consequence of the amount we spend paying foreign corporations to run local services, Telecom being the most striking example of this phenomena. We should be taking a notable whack out of every dollar that leaves this country as a means of encouraging those foreign owners (and investors) to retrench the preponderance of those profits back into the NZ economy.

    Sooner or later New Zealanders are going to be forced to decide whether they want to continue as a subordinate subject of a decaying and increasingly impotent US corporate empire or an independent nation free of that coercive influence. It is disgusting watching the Australians prostrate themselves before their Washington bosses. As long as countries like New Zealand and Australia subordinate their socioeconomic systems to the economic fantasies of the Anglo/American neoliberal model we will continue to be debtor nations.

    Taxing New Zealand’s wealthiest and foreign financial capital till they squeal is the cleanest way to achieve political and economic independence.

    If they want to leave the country, then good riddance.

Recent Comments

Recent Posts

  • New Public Housing Plan announced
    The Government has released its Public Housing Plan 2021-2024 which outlines the intention of where 8,000 additional public and transitional housing places announced in Budget 2020, will go. “The Government is committed to continuing its public house build programme at pace and scale. The extra 8,000 homes – 6000 public ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Prime Minister congratulates President Joe Biden on his inauguration
    Prime Minister Jacinda Ardern has congratulated President Joe Biden on his inauguration as the 46th President of the United States of America. “I look forward to building a close relationship with President Biden and working with him on issues that matter to both our countries,” Jacinda Ardern said. “New Zealand ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Jobs for Nature funding will create training and employment opportunities
    A major investment to tackle wilding pines in Mt Richmond will create jobs and help protect the area’s unique ecosystems, Biosecurity Minister Damien O’Connor says. The Mt Richmond Forest Park has unique ecosystems developed on mineral-rich geology, including taonga plant species found nowhere else in the country. “These special plant ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Pre-departure testing extended to all passengers to New Zealand
    To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. “The change will come into force for all flights arriving in New Zealand after 11:59pm (NZT) on Monday ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Bay Cadets learn skills to protect environment
    Bay Conservation Cadets launched with first intake Supported with $3.5 million grant Part of $1.245b Jobs for Nature programme to accelerate recover from Covid Cadets will learn skills to protect and enhance environment Environment Minister David Parker today welcomed the first intake of cadets at the launch of the Bay ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Cook Islanders to resume travel to New Zealand
    The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health. “Following confirmation of the Cook Islands’ COVID ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Supporting communities and landowners to grow employment opportunities
    Jobs for Nature funding is being made available to conservation groups and landowners to employ staff and contractors in a move aimed at boosting local biodiversity-focused projects, Conservation Minister Kiritapu Allan has announced. It is estimated some 400-plus jobs will be created with employment opportunities in ecology, restoration, trapping, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Border exception for some returning international tertiary students
    The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began. The exception will allow students to return to New Zealand in stages from April 2021. “Our top priority continues ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Tiwai deal gives time for managed transition
    Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New member for APEC Business Advisory Council
    Prime Minister Jacinda Ardern has appointed Anna Curzon to the APEC Business Advisory Council (ABAC). The leader of each APEC economy appoints three private sector representatives to ABAC. ABAC provides advice to leaders annually on business priorities. “ABAC helps ensure that APEC’s work programme is informed by business community perspectives ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt’s careful economic management recognised
    The Government’s prudent fiscal management and strong policy programme in the face of the COVID-19 global pandemic have been acknowledged by the credit rating agency Fitch. Fitch has today affirmed New Zealand’s local currency rating at AA+ with a stable outlook and foreign currency rating at AA with a positive ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Additional actions to keep COVID-19 out of NZ
    The Government is putting in place a suite of additional actions to protect New Zealand from COVID-19, including new emerging variants, COVID-19 Response Minister Chris Hipkins said today. “Given the high rates of infection in many countries and evidence of the global spread of more transmissible variants, it’s clear that ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • 19 projects will clean up and protect waterways
    $36 million of Government funding alongside councils and others for 19 projects Investment will clean up and protect waterways and create local jobs Boots on the ground expected in Q2 of 2021 Funding part of the Jobs for Nature policy package A package of 19 projects will help clean up ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand Government acknowledges 175th anniversary of Battle of Ruapekapeka
    The commemoration of the 175th anniversary of the Battle of Ruapekapeka represents an opportunity for all New Zealanders to reflect on the role these conflicts have had in creating our modern nation, says Associate Minister for Arts, Culture and Heritage Kiri Allan. “The Battle at Te Ruapekapeka Pā, which took ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Better care for babies with tongue-tie
    Babies born with tongue-tie will be assessed and treated consistently under new guidelines released by the Ministry of Health, Associate Minister of Health Dr Ayesha Verrall announced today. Around 5% to 10% of babies are born with a tongue-tie, or ankyloglossia, in New Zealand each year. At least half can ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Prisoner disorder event at Waikeria Prison over
    The prisoner disorder event at Waikeria Prison is over, with all remaining prisoners now safely and securely detained, Corrections Minister Kelvin Davis says. The majority of those involved in the event are members of the Mongols and Comancheros. Five of the men are deportees from Australia, with three subject to ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Pre-departure COVID-19 test for travellers from the UK and the US from 15 January
    Travellers from the United Kingdom or the United States bound for New Zealand will be required to get a negative test result for COVID-19 before departing, and work is underway to extend the requirement to other long haul flights to New Zealand, COVID-19 Response Minister Chris Hipkins confirmed today. “The new PCR test requirement, foreshadowed last ...
    BeehiveBy beehive.govt.nz
    3 weeks ago