There is no economic logic to selling SOEs. This ‘mum and dad’ stuff is just fluff to disguise the real agenda – taking quality companies that have been built up by taxpayers over the generations and selling them off cheap to the capitalist class so they can make a quick buck.
We pay for the need to reduce greenhouse emissions one way or the other. There’s no point complaining about the cost of the ETS on power and fuel. What we should be more pissed off about is that we are being expected to bear half the cost as taxpayers. We have to pay, the question is whether we put the cost on pollution to discourage pollution or we just lump it on taxpayers.
Here’s a graph of tax week’s tax swindle. I can’t do the property tax/rent increase part but here’s the net weekly effect of the income tax changes and the GST hike. These numbers match up with those provided by Treasury. The first 1.2 million taxpayers get less than a dollar a week. The first 3 million (of 3.4 million) get an average of $4.24 a week. The top 100,000 average $105 a week.
Trevor Mallard reports being asked by a press gallery member if he knows which nat is about to resign. Trev doesn’t know, but there’s a few choice candidates
Seeing as the theme of the day has been inequality and class war, this video from the Daily Show is very appropriate. Interesting […]
One thing National does very well is spend a lot of time softening the public up for unpopular moves so that the public attention has moved on by the time anything actually happens. Look at GST. The ‘rabbit from a hat’ trick of borrowing for larger income tax cuts served to divert attention from the well-signaled GST hike. They’re running the same strategy on privatisation.
Last month Colin King revealed that his National Party colleague Chris Finlayson had said he would block an investigation into the behaviour of his old mate Supreme Court Judge Bill Wilson. Finlayson should have recognised his conflict of interest and stood aside months ago but only did so once the media got the story. It says something about National’s standards.
The Right claims that people who aren’t on high incomes are just lazy and need to work harder, and, so, are undeserving of a fair deal. It’s insulting, it’s false, it’s just another excuse for maintaining the wealthy’s privileged position. Most people who work long hours are on low and middle incomes. And there are hundreds of thousands of low income Kiwis wanting more work.
I love that John Key is so desperate to show some progress on his memorial cycleway that he’s even going along to the opening of cycleways that aren’t funded with its money. On Sunday he showed up at the opening of a cycleway in Oamaru. The cycleway was funded by the council and NZTA. The recession has been over for a year – not a single job has been created, no cycleway built.
There’s some mean little barbs hidden in the Budget. National has abolished a tax rebate for redundant workers that helps you out if you are made redundant and your payout pushes you into a higher tax bracket. It’s a petty mean-hearted attack from an increasingly rightwing government. In fact, this insult to hard working Kiwis is an exact repetition of what they did in 1992.
The frustration was palpable today as Guyon Espiner struggled in vain to get a single straight answer from Bill English, who was only prepared to twist, evade, and repeat lines: “GUYON Do you accept that for very high income earners, people on the sort of salary like your own of $276,000 a year,you gave those people money they simply did not need?
The other day, we had a satire guest post about ‘thank the rich day’. Michael Laws appears determined to out do us: “On Thursday, this Key/English administration decided to abandon the pretence that we are an egalitarian society, or that we should ever attempt to be so. The wealthy are the wealthy because they merit that status, was the prime minister’s underlying message.”
John Armstrong looks at the typical John Key-style punt that lies behind the budget.
Meanwhile Tracey Watkins has calmed down after the excitement of seeing the size of her tax cut and is questioning why Key is so afraid of anything but tightly managed media appearances.
It’s interesting to see how Irish’s ‘rabbit from a hat’ metaphor has taken off for describing this Budget. Some, like Tracey Watkins, are even using it positively. She needs to have a bit more of a think about what the rabbit from a hat is. The rabbit itself is nothing special. In fact, in this case it’s a borrowed bunny, despite the media’s tendency to portray tax cut as costless.
In 2008, Bill English was sprung secretly telling National members that he and Key would sell Kiwibank “‘eventually but not now”. After being caught out, English and Key categorically ruled out asset sales in the first term of a National government and said they would seek a mandate to make any sales in a second term.
In what it seems to think is an act of benevolence and economic genius, National has decided to borrow a pile of money, cut key public services, put up GST, and give me an extra $1000 a year. Will it make me work harder? Hell no. My partner and I are already paid plenty. If anything it will make us look at ways to reduce the amount we work.
What does Treasury make of National’s economic plan according to the Budget papers? Here’s the outlook for when National is kicked out of office at the end of 2011: Workers’ share of the economy will have fallen from an already miserable 43.6% to 41.5%. GDP per capita will be lower when National leaves office than when they entered it. Real wages will drop 2%.
The latest Roy Morgan poll makes for grim reading for the government ahead of what promsies to be an unpopular budget. Confidence in government is now bouncing between net 25% and 30% positive. That compares to 55% last October. Put that another way: 1 in 8 Kiwis have gone from having a postive view of this government to a negative one in the past half year, and it’s showing up in the party’s numbers.
Hone Harawira does not want to vote for the ‘don’t be jealous’ budget and he doesn’t think the Maori Party will be standing true to its principles or supporters if it does. Harawira sought permission to vote against the Budget. Tariana Turia, who is awfully comfortable in the back of her Crown limo, refused. Let’s hope Harawira has the courage cross the floor anyway.
Giving the rich a bucket of your money, is about keeping valuable people (who must be rich, by definition) in this country, or closing loopholes (by make the cheat automatic), or was it about boosting growth through trickle down (which is like helping a dehydrated man by giving water to someone with an already full bladder and hoping they piss on him)? Whatever, just don’t be jealous, OK?
We already know that National’s big economic plan this budget is a tax swap from working Kiwis to the rich that will not affect growth but will increase inequality. There’s some money for science and Kiwirail, which is good but only partially reverses the cuts that National imposed last year. The two big items in the budget that the Nats have control over (assuming no cuts to benefits or super) are education and health. The increases in these two sectors are the things to watch.
Tomorrow, National will give huge tax cuts to the wealthiest New Zealanders. $12,000 a year for a typical CEO or a Prime Minister on $350,000 a year. $290,000 a year for Paul Reynolds, the CEO of Telecom. The Right are trying a bunch of excuses for this unneeded gift to the richest people in the country, paid for by working Kiwis. Let’s debunk ’em.
I’m really surprised that this comment from John Key hasn’t elicited more reaction: “[Future] recessions are almost certainly in my view going to be global in nature and probably more severe… I think the question is not whether there is going to be another global recession but when that recession is going to hit.” A sovereign debt crisis this year or an oil supply crunch in 2012?
There are several myths about the coming tax swap that have a surprising amount of currency. The biggest is that this tax swap will boost growth. It won’t and the Tax Working Group never said it would. What it will do is increase inequality with massive tax cuts for the elite funded by higher GST and rents for working Kiwis. That’s not by accident or inevitable – it’s by design.
Hmm, so another bad, bad week for the directionless Key Government. Lucky a major newspaper steps in with a chance to make the PM look cute and adorable. It’s pretty telling that National Party pollster David Farrar chose to highlight a joke question from Valerie Vili and a joke answer; the answers to real questions are amazingly weak.
The tax changes that will soon be announced are characterised even by the Government as a ‘tax swap’. They are fiscally neutral. The tax burden will not fall. All that will change is who it will fall on. Most people end up neutral or slightly worse off from the GST and income tax changes. The rich get huge cuts, which renters will end up paying for. Who are the renters? The census tells us.
Tau Henare is opposing Labour’s suggested policy of taking GST off fruit and vegetables saying “If they can’t afford to buy a lettuce or a tomato then they should give up the drink and the smokes,” and “It’s a well-known fact that poor people, if they don’t have enough money, will buy smokes and not bread.” Really? Well, it took two minutes checking on the Stats’ website to prove him wrong.
Make no mistake, John Key’s comment about Tuhoe cannibalism was no accident, it was no joke, and it certainly was not ‘self-deprecating’. Key didn’t just happen to accidentally make a comment that appeals to a deep-seated prejudice that is still current among redneck Pakeha and wedges our society in two. It was a message to Tuhoe
Shame on National and Kiwirail CEO Jim Quinn for not letting the Kiwirail workers even bid to build the new Auckland railcars. This isn’t just about national spirit and a belief in New Zealand. It’s about acting smarter and making the right choices for the economy. Steven Joyce and National have proven that they neither believe in New Zealand nor have the brains to recognise the smart moves for the country.
The Right has forced the Supercity on Aucklanders who don’t want it, don’t need it, and won’t benefit from it. Aucklanders were denied their legal right to a referendum on amalgamation into the Supercity. But they’re getting a vote soon. And they’re going to punish the Right’s candidates. And, of course, Brown is also just a far better candidate.
Aucklanders – check OurAuckland and vote.
Phil Goff has put some good solid (if rather moderate) left-wing substance on the table in his pre-budget speech yesterday. Duncan Garner says that was the right move, but wonders if Labour now needs to focus on the questions surrounding John Key. Garner says in the wake of several questionable moves Key’s integrity is now on the line and Labour should exploit it.
I’ve been having a look at the new advice on the civil service code of conduct. It is a clear attempt by the Nats to make sure the civil service is ‘politically correct’ for their purposes. Perhaps they’re tired of getting official advice that says ‘don’t cut that, it’s good value for money’, ‘don’t fund that, it’s stupid’, and ‘don’t pass that law, it might cause more murders’.
Phil Goff has delivered his speech on Labour’s economic vision ahead of the Budget. It’s a good one, filled with core Labour values and ideas that will get New Zealand moving ahead. Goff talks about fairer tax rather than tax cuts for the rich, better monetary policy, and investing in New Zealand’s future.
The Herald editorial is rightly damning of the government’s lacklustre approach to science funding. The ‘new’ money is a trickle, barely replacing last year’s cuts. A crucial difference between Labour and National has always been that Labour invests in the long-term success of the country while National makes short-term wealth grabs for the ruling elite.
The argument against privatising prisons isn’t high principle (only the state should imprison people) or that this is an attempt at cost-cutting. No, the reason private prisons suck is they cost more. The last time Auckland Remand was privatised it didn’t save money. It cost $66,000 a year to imprison someone in Auckland remand vs $49,000 for a publicly-run equivalent.
Tuhoe had settled their compensation deal with the Crown. It was to go to Cabinet for sign off and the deal would be announced at a hui on Friday.But then John Key was confronted by the Nat’s pissed off hick base at the regional conference. What was he to do? The right thing by a people whose land was stolen from them? Or the thing that would best help his poll ratings? Guess.
