Tax policy: My view


The decision by Labour to take taxation increases off the table is short sighted for it effectively sends a signal that any shortfall in funding will have to come come from somewhere else. It can also be perceived as being too weak to stand up to the Government.

Labour’s expenditure plan differs from what I would like to see. However their plan has been declared fiscally sound. It does not have the $11.7 billion hole that Steven Joyce continues to claim. Nearly every economist of national repute has said it is sound and that the National Party are clutching at straws in continuing to attack it.

It comes from a Minister of the Crown who was linked to Novopay pay scandal. It comes from a Government whose outlook continues to lack direction. This is the same Government that has sent Government debt soaring to and failing to address public concerns about corporate non compliance. All starting to look rather ratty and in need of a holiday on the Opposition benches.

It does not need to be like this.

I have an idea of spending priorities and how they are going to be funded. There are priorities other than investment as well to be factored in. They include paying back some of the debt accrued since 2008. A few ideas so far:

  • I support immediate removal of G.S.T. from fruit and vegetables.
  • A review of the tax code to make sure it is working for New Zealand could be quite useful in order to know the suitability of the current taxation methods employed and whether we can do better.
  • The Labour Party idea of a guidance counsellor at each school is a good idea. Too many vulnerable young people either suffering a miserable existence at home with inadequate support.
  • Either systematically overhauling or replacing the Social Welfare Act, the welfare support provided and appending benefits to an appropriate economic measure.
  • A $2 billion investment in rail and the merchant marine on top of existing spending. Both are very poorly invested in and I am concerned that even with quake repairs now approaching completion that the increased capacity will be quickly soaked up.
  • A $50 levee on foreign tourists at the border to pay for infrastructure
  • To reduce insurance costs and encourage greater responsibility, drivers will need to purchase third party insurance

Surplus money will be set aside to fund other high cost items and renew the $1k kick start for Kiwi Saver. Other spending priorities will be announced later as the impact of the proposed expenditure becomes clear.

 

 

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