The Kākā by Bernard Hickey
The Kākā by Bernard Hickey
Dawn chorus: When is a levy not a tax?
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Dawn chorus: When is a levy not a tax?

PM is denying a mandatory ACC-style unemployment insurance scheme would be a tax hike. The devil will be in the detail of an idea that employers, unions and the Opposition support
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TLDR & TLDL: The quest for an unemployment insurance scheme unveiled in last week’s Budget is remarkably close to being a consensus policy that risks slipping through Parliament and into the social contract between taxpayers at large, employers and workers without much debate.

But it deserves a much closer look because the way it’s structured and funded could, in various combinations, turn into a tool that widens inequality; creates a new middle class tax break; creates compulsion without compensation; and could become the basis for two-tier social safety net — with one level of support for the rich with ‘proper jobs’ and a much lower level for the rest.

I’ll be digging around more on this in the coming days.


Briefly elsewhere in our political economy

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"This notion of service has really gone to the heart of everything I have done in the past.” Ka rawe! Congratulations to our Ahorangi Chief Executive Professor Dame Cindy Kiro who has just been announced as the next Governor-General of New Zealand. https://t.co/fFW44QvmGE

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The Kākā by Bernard Hickey
The Kākā by Bernard Hickey
Bernard Hickey and friends explore the political economy together.