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.
Unions are closing the wage gap in the oil industry using collective action
Meanwhile the government is preparing to give rich individuals tax cuts and has been eroding the rights of workers.
The Greens have released their alternative budget, “Mind the Gap”. It focuses on the inequality between rich and poor in NZ (rightly called “the scourge of modern societiesâ€). It’s great to see the Greens tackling this issue head on.
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.
In other cheery news this morning: “Euro crisis goes global as leaders fail to stop the rot”. Germany’s Chancellor says that “politics have to reassert primacy over the financial markets”…
The other day I wrote about pay rises for workers. 75% of non-union workers took a pay cut last year. Seems their bosses made off a lot better. Despite all the business collapses and the 21,000 lost jobs, half of all CEOs got a pay rise last year and the typical pay rise was a massive 5% (only 10% of workers got a 5%+ way rise). It’s the essence of class war.
Yesterday, Darien Fenton’s Redundancy Protection Bill was voted down by the Government. Disgraceful. The Nats added a kick in the teeth by having David Bennett lead their side of debate with a mad, disrespectful speech. Congratulations to Darien, Labour, the Greens, Progressives, the Maori Party, and the groups representing 350,000 Kiwi workers who fought for this. We’ll win next time.
You might say that National’s new $50 a year graduate fee is a small thing. But it’s another discouragement for a young person who is looking at either going straight into low-skill, low-pay work or borrowing thousands to get some skills. The last thing we need to be doing is discouraging more people from going on to polytech or uni.
Not content with raising the cost of living through a GST increase, the Nats are clearly planning another blow to young families. In a move that breaks yet another election promise, Bill English is preparing the ground for the axing of 20 hours free early childhood education.
Labour leader Phil Goff has come out swinging against National’s proposal to cut the top tax rate. It’s great to see Phil living up to his promise to stand up for the many, not the few. National’s plan to cut the top rate will only benefit the very wealthy, like John Key. Now we can stand assured, the 6th Labour Government will fix that injustice.
The Nats are looking to cut $1.8 billion in spending over four years. Where from? What and who will be deemed to be “low quality” in need of “weeding out”? The answers are going to tell us a lot about the National Party’s values…
John Key is planning to slash and burn $2 billion out of our public services. Key says the slashing is needed to pay for increasing health and education costs. Bullshit. It’s about paying for John Key’s and his rich mates’ tax cuts.
Patent lawyer John David Hardie is a bludger. You and me, we pay our taxes. We know we get public services and a decent society out of it. This rich prick is trying to get out of a $10.3 million tax bill. What to do with this rich bludger? How about give him a $1.25 million tax cut. That’s what that other rich layabout John Key is planning.
Kelvin Davis: It goes to show how high the aspirations of some of our Maori leaders are. We now aspire to bung the bros in the hinaki and watch the dollars roll in. The longer and more often we can put them away, the sooner we will be able to afford to expand the prison and lock even more away. With the soaring crime rate and high Maori unemployment everything is coming together nicely.
National has announced the location for its first private prison on the same day we find out that they want their working group to look at privatising welfare. Private prisons were signaled by National. Privatising welfare was not. In both cases the victims will be a segment of society that this government and its supporters have actively vilified and the ones with the most to gain will be overseas corporations.
So the govt wants to sue the Waihopai 3 for $1.1 mil. No pesky jury this time. The dudes only have a grand between them. Spending a couple of hundred thousand on lawyers’ fees to bankrupt some hippies. Doesn’t seem like the best use of taxpayer cash. Tell you what. If the govt really wants its $1.1 million they can take it out of our tax ‘cuts’. 25 cents each. That’ll be my tax cut pretty much gone.
George Monbiot writes: It’s a bitter blow. When the government proposed a windfall tax on bonuses and a 50p top rate of income tax, thousands of bankers and corporate executives promised to leave the country and move to Switzerland(1,2). Now we discover that the policy has failed: the number of financiers applying for a Swiss work permit fell by 7% last year.
Remember “the underclass”? They were briefly fashionable in National circles in 2007. Now that they are the government National’s policies for the underclass seem to involve a good deal of beneficiary bashing. Invalids are being thrown off their benefit before the new legislation is even in effect. Election promises are being broken to remove the carrot and wield the stick. How will this help the underclass?
I think they know full well what causes violent crime.
They just don’t care.
You can’t ‘force beneficiaries back into work’ by ‘giving them a kick in the pants’ if there’s no jobs for them to go into. This supposed ‘get tough’ approach won’t get people off the benefit. It’s a cynical exercise in political marketing to make the government look active and distract from the real issues. It is no coincidence that this policy was released a day after the mining policy.
Paula Bennett and John Key have announced they’re getting tough on beneficiaries.
What a pity they couldn’t put the same energy into saving a few jobs in the first place.
Anne Tolley has promised that national standards have been introduced so that “every single child could read, write, and do maths when they left school”.
The depths of arrogance and ignorance in that claim leave me at a loss for words…
I made a mistake in my calculations of the effects of the leaked tax reforms. In the corrected numbers, the poor get less, the rich get more. The wealthiest 13,000 taxpayers get a quarter of a billion in tax cuts between them – nearly $20,000 a year each. The poorest half $1.25 a week and higher rents to pay. This ‘tax reform’ package is really a mask for a wealth grab from the many to the few.
Under National’s proposed tax cuts and GST increases someone on the average wage of $48,000 comes out about $5 to $10 per week ahead. But 70% of Kiwis have incomes under $40,000. Their tax cuts will barely compensate them for the GST increase. How can National go on claiming that “the vast bulk of New Zealanders will be better offâ€?
The poor don’t need tax cuts for the top 12% to to inspire them to want to get out of poverty. Poverty is inspiration enough. But thepoor cannot all become rich. To function capitalism needs poverty. There’s got to be lots of people doing the shitty, dangerous, hard jobs for cheap. And the wealth will always flow to the elite few who own capital or defend their interests.
Fran O’Sullivan is a pro-business liberal or libertarian, David Garrett is a knuckle brain conservative. But actually, they’re not so far apart. It seems both believe in freedom for the rich and control over the poor. Incredibly O’Sullivan goes into bat for Garrett over his sterilisation comments.
The recession has forced tens of thousands of people out of work. There are now 276,000 jobless Kiwis. The lucky ones (only a […]
With true tory arrogance at the ACT conference this weekend, Don Brash has described New Zealand voters as venal and stupid.
Apparently New Zealand’s reluctance to destroy what is left of their society by implementing Brash’s discredited crazy old man economic voodoo is a sign of their stupidity.
Apparently nobody in ACT disagreed with him. Go figure.
The business elite wants to drag us back to the days of unfair elections and weak democracy, when business interests held even more sway than now. We don’t want to return to those days. We want to keep the best electoral system in the world – MMP.
Key doesn’t have the money to keep his promise to make everyone better off or at least no worse off from tax reform. He doesn’t have pixies in the garden to make more money. But he can cut the bottom tax rates, and a new poll shows strong support for that move.
In their attempts to justify putting up GST on all New Zealanders to give huge tax cuts to the wealthy few, the Right are going so far as to argue that middle and low income New Zealand doesn’t even exist.
Key has explicitly promised that no-one will be left worse off by these changes but he doesn’t have the money, can’t have to money, to do that if he persists in handing over buckets of money to the rich.
National love to tell us what we want to hear. Among their many pre-election policy lies they waxed lyrical about the value of education, before effectively cutting funding in the budget. On Adult and Community Education (ACE), Bill English was particularly supportive…
Click through for today’s Tom Scott cartoon.
He hits the nail on the head.
Putting up GST hits the poor the hardest.
For Kiwis who are barely scrapping by every cent counts.
I find it frustrating that the debate over tax concerntrates on the top rate rate, which doesn’t apply to 90% of taxpayers. It’s […]
This is the first post in an occasional series that will translate Tory speak into plain language (fellow writers and guest posters are […]
