web analytics

Tax cuts for the few, just plain cuts for the many

Written By: - Date published: 7:57 am, July 13th, 2010 - 10 comments
Categories: class war - Tags:

NZPA reports Bill English is lining up more cuts for public services under the cover of getting the books in the black.

According to English:

In our first two Budgets, the Government took early steps to bring deficits and Government debt under control. We will build on that over the next few years by living within our $1.1 billion annual allowance for extra operating spending and weeding out lower-priority spending.

Really? You could’ve fooled me – I thought that the last budget was about borrowing a billion dollars to pay for massive tax cuts for New Zealand’s richest.

But then this is the kind of dodgy accounting that this government uses to make claims that spending $1.3bn on private prisons is great because it generates $1.2bn of benefits.

If this was a straight-up transfer of wealth from the poor to the rich within a stable economy it would be bad enough but it’s not that simple. What makes it worse is the fact cutting spending now is likely to contract the economy at a time it is still extremely fragile, which will in turn create the need for more debt.

Which will then be used by the government as an excuse for more cuts and then privatisation of public assets.

Bill English isn’t stupid. He knows exactly what kind of a vicious cycle he’s risking and, in fact, he knows it from experience – exactly the same thing was done under the last National government in which he was a minister.

10 comments on “Tax cuts for the few, just plain cuts for the many ”

  1. kriswgtn 1

    I dont think he cares and frankly neither do I.
    Used to be proud of living here and frankly in past 18 months that has changed
    NZ is a disgrace.NZ deserves what it gets for voting them in
    Off to OZ we go

    Good luck

  2. Carol 2

    When English, Goff and others were interviewed on this a little while ago on NatRad Morning Report, I was wondering about the way certain measures are used as a sign of the country “growing”, “improving”, “getting back in the black”, or whatever positive label they give it.

    I was reminded of Idiot/Savant’s piece on GPI yesterday:

    http://norightturn.blogspot.com/2010/07/quest-for-gpi.html

    For those who don’t know, the GPI combines the traditional measure of national advancement – GDP – with measures of environmental and social progress to give us a better measure of whether we are in fact better off.

    All three versions disagree on exactly which measures should be used, and how they should be combined, but they’re all clear that you need to measure things other than just straight economic growth.

    As for why, other countries which have measured GPI have found something disturbing:

    From World War II until the late 1970s, GDP and GPI roughly kept track. Any expansion in economic activity registered directly as a general increase in reasons to feel good about life.

    But from the 1970s, raw economic output has continued to soar (and no wonder with every family working two jobs and all hours, says Peet) while GPI has stagnated. Spinning the wheels faster has not necessarily been paying off.

  3. Shane 3

    I agree with krisstgn above – English doesn’t care because this is about transferring wealth from the masses to the elite. The workers have been disciplined since the 80s and now all the govts. around the world are transferring wealth upwards before the world economy tanks again when the peak oil hits around 2014/15. I suppose they think it is going to shield them from the consequences of energy depletion and climate change. They are saving up for a big rainy day.
    This is class warfare on a massive scale and the rich are winning because the workers don’t even understand that a war is being waged – mostly because the msm just don’t do their job. Funny how TVNZ are making cuts and the first people to go are their current affairs team? Current affairs programming in this country is so woeful it is painful to watch – and now even less is going to be done… no wonder people do not know what is going on in the country.

    • Draco T Bastard 3.1

      …mostly because the msm just don’t do their job.

      Actually, they are doing their job – ensuring that the people aren’t informed is their job.

  4. Draco T Bastard 4

    http://gordoncampbell.scoop.co.nz/2010/07/13/campbell-the-ideology-behind-state-spending-cuts/

    But then to repeat the current stringency is about an ideology of hostility to the state, and not anything to do with economic sense. To the ideologues on the centre right, it is always a good time to cut back on state spending. If we are in a recession, the O’Reillys of the world will argue, we can’t afford state spending. If we’re in a boom, they argue, we don’t need it. And if we’re where we are now, in a sickly inbetween phase, they argue we can’t afford it, because we have to (somehow, by pulling on our own bootstraps ) turn this into a competitive advantage and generally, be willing to cheerfully volunteer to accept less in the way of pubic services, in order to offset the private sector’s incompetence with respect to its own debt position.

    That’s about it. Ideology beats facts and research every time with this government.

    • Carol 4.1

      It is also interesting to hear Rod Oram’s take on Nat Rad this morning on the fragile state of the world economy:
      http://www.radionz.co.nz/national/programmes/ninetonoon

      little available in the US or UK to repeat the last stimulis packages, the widespread occurrence of the financial crisis means few can export their way out of trouble, corporations here and in the US & Europe hoarding cash unless the banks call up their loans. The latter means there is little investment going on here or in many other places by business, but Aussie is a bit of an exception with a lot of investment going on.

      And the case of Ireland’s bust following its boom is sobering, considering it wasn’t long ago that it was held up as the success story the NZ Labour government should have been copying.

  5. Seems like English is on some personal and spiteful vendetta type bullshit for the average NZer handing his failed arse back to him in shreds when he was National leader…

Links to post

Recent Comments

Recent Posts

  • Equitable response to Omicron vital
    The Green Party supports the Government’s decision to move Aotearoa New Zealand to traffic light level Red at 11.59pm tonight, but says its success will depend on the support that is made available to the most vulnerable. ...
    3 days ago
  • How we’re preparing for Omicron
    As countries around the world experience Omicron outbreaks, we’re taking steps now to ensure we’re as prepared as possible and our communities are protected. ...
    6 days ago
  • What’s Labour achieved so far?
    Quite a bit! This Government was elected to take on the toughest issues facing Aotearoa – and that’s what we’re doing. Since the start of the pandemic, protecting lives and livelihoods has been a priority, but we’ve also made progress on long-term challenges, to deliver a future the next generation ...
    2 weeks ago
  • Tackling the big issues in 2022
    This year, keeping Kiwis safe from COVID will remain a key priority of the Government – but we’re also pushing ahead on some of New Zealand’s biggest long-term challenges. In 2022, we’re working to get more Kiwis into homes, reduce emissions, lift children out of poverty, and ensure people get ...
    2 weeks ago

  • New Zealand retains top spot in global anti-corruption rankings
    Justice Minister Kris Faafoi has welcomed news of New Zealand’s ongoing position as top in the world anti-corruption rankings. The 2021 Corruption Perceptions Index released by global anti-corruption organisation, Transparency International, ranks New Zealand first equal with Denmark and Finland, with a score of 88 out of 100. “This is an ...
    BeehiveBy beehive.govt.nz
    12 hours ago
  • Testing improvements see New Zealand well prepared for Omicron
    New Zealand’s PCR testing capacity can be increased by nearly 20,000 tests per day to deal with a surge in cases as part of our wider COVID-19 testing strategy, Associate Minister of Health Dr Ayesha Verrall said. “We have continued to adapt our public health response to safeguard the health ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • 5,000 portable air cleaners for schools on their way
    As schools are preparing to return, Education Minister Chris Hipkins has announced 5,000 air cleaners have been ordered for New Zealand schools. “As we know, along with vaccination, testing, good hygiene and physical distancing, good ventilation is important in minimising the risk of airborne transmission of the virus that causes ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • New Zealand to move to Red from 11.59pm today
    All of New Zealand will move to the Red setting of the Covid Protection Framework (CPF) at 11:59pm today as Omicron is potentially now transmitting in the community, Prime Minister Jacinda Ardern says. “Nine COVID-19 cases reported yesterday in the Nelson/Marlborough region are now confirmed as Omicron, and a further ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Mandatory boosters for key workforces progressing well
    More than 5,785 (82%) border workers eligible for a booster vaccination at 6 months have received it so far, COVID-19 Response Minister Chris Hipkins says. “That’s a really strong uptake considering we announced the requirement the week before Christmas, but we need to continue this momentum,” Chris Hipkins said. “We ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ to move to Red
    Nine COVID-19 cases reported yesterday in the Nelson/Marlborough region have now been confirmed as the Omicron variant, and a further case from the same household was confirmed late yesterday. These cases are in a single family that flew to Auckland on 13 January to attend a wedding and other events ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Zealand to provide further help for Tonga
    Aotearoa New Zealand is giving an additional $2 million in humanitarian funding for Tonga as the country recovers from a volcanic eruption and tsunami last weekend, Foreign Affairs Minister Nanaia Mahuta and Defence Minister Peeni Henare said today. This brings Aotearoa New Zealand’s contribution to $3 million. “This support will ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Quarterly benefit numbers show highest number of exits into work
    The Government’s strong focus on supporting more people into work is reflected in benefit figures released today which show a year-on-year fall of around 21,300 people receiving a main benefit in the December 2021 quarter, Minister for Social Development and Employment Carmel Sepuloni said. “Our response to COVID has helped ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Northland to move to Orange, NZ prepared for Omicron 
    Northland to move to Orange Rest of New Zealand stays at Orange in preparedness for Omicron All of New Zealand to move into Red in the event of Omicron community outbreak – no use of lockdowns Govt planning well advanced – new case management, close contact definition and testing rules ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • RNZAF C-130 Hercules flight departs for Tonga as Navy vessels draw nearer to Tongatapu
    A Royal New Zealand Air Force C-130 Hercules has departed Base Auckland Whenuapai for Tonga carrying aid supplies, as the New Zealand aid effort ramps up, Foreign Affairs Minister Nanaia Mahuta and Defence Minister Peeni Henare said today. “The aircraft is carrying humanitarian aid and disaster relief supplies, including water ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New Zealand prepared to send support to Tonga
    New Zealand is ready to assist Tonga in its recovery from Saturday night’s undersea eruption and tsunami, Foreign Affairs Minister Nanaia Mahuta and Defence Minister Peeni Henare said today. “Following the successful surveillance and reconnaissance flight of a New Zealand P-3K2 Orion on Monday, imagery and details have been sent ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Aotearoa New Zealand stands ready to assist people of Tonga
    The thoughts of New Zealanders are with the people of Tonga following yesterday’s undersea volcanic eruption and subsequent tsunami waves, Foreign Affairs Minister Nanaia Mahuta says. “Damage assessments are under way and New Zealand has formally offered to provide assistance to Tonga,” said Nanaia Mahuta. New Zealand has made an ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Record high of new homes consented continues
    In the year ended November 2021, 48,522 new homes were consented, up 26 per cent from the November 2020 year. In November 2021, 4,688 new dwellings were consented. Auckland’s new homes consented numbers rose 25 per cent in the last year. Annual figures for the last nine months show more ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Report trumpets scope for ice cream exports
    Latest research into our premium ice cream industry suggests exporters could find new buyers in valuable overseas markets as consumers increasingly look for tip top quality in food. Economic Development Minister Stuart Nash has released a new report for the Food and Beverage Information Project. The project is run by ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Honouring the legacy of legendary kaumātua Muriwai Ihakara
    Associate Minister for Arts, Culture, and Heritage Kiri Allan expressed her great sadness and deepest condolences at the passing of esteemed kaumātua, Muriwai Ihakara. “Muriwai’s passing is not only a loss for the wider creative sector but for all of Aotearoa New Zealand. The country has lost a much beloved ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Have your say on proposed changes to make drinking water safer
    Associate Minister for the Environment Kiri Allan is urging all New Zealanders to give feedback on proposed changes aimed at making drinking water safer. “The current regulations are not fit for purpose and don’t offer enough protection, particularly for those whose water comes from smaller supplies,” Kiri Allan said. “This ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Planting the seeds for rewarding careers
    A boost in funding for a number of Jobs for Nature initiatives across Canterbury will provide sustainable employment opportunities for more than 70 people, Conservation Minister Kiri Allan says. “The six projects are diverse, ranging from establishing coastline trapping in Kaikōura, to setting up a native plant nursery, restoration planting ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • New Zealand congratulates Tonga's new Prime Minister on appointment
    Minister of Foreign Affairs Nanaia Mahuta today congratulated Hon Hu'akavameiliku Siaosi Sovaleni on being appointed Prime Minister of the Kingdom of Tonga. “Aotearoa New Zealand and Tonga have an enduring bond and the Kingdom is one of our closest neighbours in the Pacific. We look forward to working with Prime ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • High-tech investment extends drought forecasting for farmers and growers
    The Government is investing in the development of a new forecasting tool that makes full use of innovative climate modelling to help farmers and growers prepare for dry conditions, Agriculture Minister Damien O'Connor said.  The new approach, which will cost $200,000 and is being jointly funded through the Ministry for ...
    BeehiveBy beehive.govt.nz
    3 weeks ago