Willis unveils tax cuts offset by spending cuts and a plethora of new fees, but a weaker economy means Government is increasing net debt by $68.3b by mid-2028, which is $12b above December's forecast
It would be good if the spending was going to be on a tugboat, but this is just money being spent on a consultant when less money is supposed to be being spent on consultants.
How will we get past the "classical" view on inflation vs spending and the investment demand in response to both our past sin of insufficient physical and social infrastructure; and the urgent need to mitigate and adapt to our failing biosphere?
Does the budget documentation include a list of the (claimed) 240 public spending funding cuts? Or do I have to look at each of the estimates by department/sector?
Worked it out - there is a budget document called "Summary of Initiatives" which provides this list.
And what a pathetic list of ankle biting cuts it is.
Confirms three things (a) the ideological assertions about wasteful government spending are without real foundation; (b) this government is avoiding forward-thinking actions on climate change, infrastructure, public health, productivity, and poverty; and (c) there are, and will continue to be, real cuts to 'front-line' services.
Thanks Bernard - the last paragraph highlights the lack of any vision!! There's also one comment by Ganesh which pretty much says it all: There is no aspiration in this budget!!!
New Zealand will stay stuck in the mire until it revises its tax policy. The latest tax cuts, that give more free money to those that already have it than to those that are "the real battlers" (to mis-quote Phil O'Reilly), means that any future government must start from a position of a lower tax-take. To right this situation, a Party that intends to become the government must:
1. Give prior notice of income tax rates before an election.
2. Start immediately once elected to tax houses, or land set aside for housing, as a start on a wealth tax. The value of all property is included in rates demands. Notice of the rate of taxation etc should be given to the electorate before the election.
3. Within three years the government should institute other measures to be included in a wealth tax.
I believe that only by revising the tax base will N.Z. make progress
It would be useful over time, but the problem is it takes a long time to raise a substantial amount of money. In contrast a wealth tax based initially on property raises money as soon as its applied.
Therefore the sooner a capital income tax is introduced/started the better.
I believe that all income must be taxed.
I have had over a million dollars of capital income and it has not been taxed but the paltry income from my old age pension is taxed. That is immoral and an injustice.
My view is our tax system needs a complete overhaul to include capital gains, wealth, estate and stamp duty on property transactions. It’s high time to introduce some fairness and reality into what is needed to really address the challenges we face and pay more than lip service to the notion that kiwis care for each other and the planet that supports us.
Bernard, this is an excellent analysis and insight into the lack of vision indicating that the people running the show probably couldn't run a bath. Ganesh's insights are priceless. I vote to make this public, please.
Excellent discussion. Thank you. I always feel I learn. Would love to see/hear Ganeesh again. Sad to say I don’t hear a different political view generally. Where are they?
Based on discussions I’ve had with friends who are National supporters I think they share the same concerns expressed here. Even the traditionally right leaning NZ Herald is publishing strong criticism of the government.
The real problem is that our politicians have vested interests, in themselves! The continued blame between NAT & LAB benefits them both. NZ should get a collective grip and realize that these two major parties are only going to drag us further and further into the same old mediocrity.
There's plenty more ranting, but these people are proper morons if they think everyone is going believe their tripe. Pity is, enough do... The fact that they didn't fund cancer drugs to a small minority of people (in a seriously shit situation) and gave tax cuts is a clear sign they are not willing to do the right thing to the people that need it most from their government.
It's starting to look that way. When I read "The fine line of power and corruption" by Simon Wilson in the paper regarding conflicts of interest and donations for MP's and listened to the National Radio regarding donations given to Shane Jones. The Fast track -Approvals Bill - the unchecked power the bill gives to three ministers will open the door to corruption. I was quite alarmed that a QE11 covenant could be disregarded if it stood in the way of mining.
Mcleod, even though he was removed through lack of declaration of donations was the recipient of considerable largesse from members of the mining property and investment worlds and would have been the chair of the environment select committee which is considering the Fast -Track Approvals Bill. The comment by Simon Wilson illustrates other discrepancies. As well as Act MP Todd Stephenson - has investments in drug companies ....
Ganesh and everyone else that lives in the real world; "running an economy is not like a household budget".
99% of Government party members: "yes it is, or it bloody-well should be".
1% of Government party members "we know, but if our chaps run it as if it is, democracy falls over and private capital prevails as the sole source of power".
1. The monopoly currency issuer never functionally "borrows" their own currency. It is an interest rate maintenance operation = basic income but only for people who already have money in proportion to how much money they already have.
2. NZ gov might be in a real surplus position given base inflation? So the appropriate policy adjustment is to increase spending, not seek an "offset". Cutting spending would be pro-cyclical on the way down to a recession, a terrible policy. Tax cuts are fine, if they increase purchasing power at the base. So eliminate income tax and GST (or keep all the statutory crud since it's a hassle to vote away, but just set the tax rate to zero). to drive demand for NZD introduce a simple land tax --- saves heaps *in real terms* on compliance costs for GST and income tax.
3. Income taxes are not "paying for" social security, workers pay for social security in real terms. Superannuation should be scrapped, it is a pointless waste of human activity which provides zero real produce for retirees. The Government can always make pension payments when they are due, without question, the "pay for" is in real terms = are we employing everyone to produce the goods retirees desire to consume and that we want them to consume for a decent dignified retirement?
I had to smile at your last paragraph - in essence forward planning for not forward planning!
And there I was, thinking it was a joke in lieu of the typical timeline cleansing pic 😐
It would be good if the spending was going to be on a tugboat, but this is just money being spent on a consultant when less money is supposed to be being spent on consultants.
“Tugboat” Bill perhaps?
$600,000 to investigate the buying of a tugboat.
which ex National politician will get the $600,000?
how much did Bill English get for the Kainga Ora report?
How will we get past the "classical" view on inflation vs spending and the investment demand in response to both our past sin of insufficient physical and social infrastructure; and the urgent need to mitigate and adapt to our failing biosphere?
Does the budget documentation include a list of the (claimed) 240 public spending funding cuts? Or do I have to look at each of the estimates by department/sector?
Worked it out - there is a budget document called "Summary of Initiatives" which provides this list.
And what a pathetic list of ankle biting cuts it is.
Confirms three things (a) the ideological assertions about wasteful government spending are without real foundation; (b) this government is avoiding forward-thinking actions on climate change, infrastructure, public health, productivity, and poverty; and (c) there are, and will continue to be, real cuts to 'front-line' services.
Thanks Bernard - the last paragraph highlights the lack of any vision!! There's also one comment by Ganesh which pretty much says it all: There is no aspiration in this budget!!!
New Zealand will stay stuck in the mire until it revises its tax policy. The latest tax cuts, that give more free money to those that already have it than to those that are "the real battlers" (to mis-quote Phil O'Reilly), means that any future government must start from a position of a lower tax-take. To right this situation, a Party that intends to become the government must:
1. Give prior notice of income tax rates before an election.
2. Start immediately once elected to tax houses, or land set aside for housing, as a start on a wealth tax. The value of all property is included in rates demands. Notice of the rate of taxation etc should be given to the electorate before the election.
3. Within three years the government should institute other measures to be included in a wealth tax.
I believe that only by revising the tax base will N.Z. make progress
.
I disagree with a wealth tax.
I believe a capital income tax is essential.
It would be useful over time, but the problem is it takes a long time to raise a substantial amount of money. In contrast a wealth tax based initially on property raises money as soon as its applied.
Therefore the sooner a capital income tax is introduced/started the better.
I believe that all income must be taxed.
I have had over a million dollars of capital income and it has not been taxed but the paltry income from my old age pension is taxed. That is immoral and an injustice.
I agree wholeheartedly Robert
My view is our tax system needs a complete overhaul to include capital gains, wealth, estate and stamp duty on property transactions. It’s high time to introduce some fairness and reality into what is needed to really address the challenges we face and pay more than lip service to the notion that kiwis care for each other and the planet that supports us.
Bernard, this is an excellent analysis and insight into the lack of vision indicating that the people running the show probably couldn't run a bath. Ganesh's insights are priceless. I vote to make this public, please.
Excellent analysis Bernard thank you
Happy to make this public .
Tugboat ..🤬
Excellent discussion. Thank you. I always feel I learn. Would love to see/hear Ganeesh again. Sad to say I don’t hear a different political view generally. Where are they?
Based on discussions I’ve had with friends who are National supporters I think they share the same concerns expressed here. Even the traditionally right leaning NZ Herald is publishing strong criticism of the government.
The real problem is that our politicians have vested interests, in themselves! The continued blame between NAT & LAB benefits them both. NZ should get a collective grip and realize that these two major parties are only going to drag us further and further into the same old mediocrity.
There's plenty more ranting, but these people are proper morons if they think everyone is going believe their tripe. Pity is, enough do... The fact that they didn't fund cancer drugs to a small minority of people (in a seriously shit situation) and gave tax cuts is a clear sign they are not willing to do the right thing to the people that need it most from their government.
You’re so right!!
It's starting to look that way. When I read "The fine line of power and corruption" by Simon Wilson in the paper regarding conflicts of interest and donations for MP's and listened to the National Radio regarding donations given to Shane Jones. The Fast track -Approvals Bill - the unchecked power the bill gives to three ministers will open the door to corruption. I was quite alarmed that a QE11 covenant could be disregarded if it stood in the way of mining.
Mcleod, even though he was removed through lack of declaration of donations was the recipient of considerable largesse from members of the mining property and investment worlds and would have been the chair of the environment select committee which is considering the Fast -Track Approvals Bill. The comment by Simon Wilson illustrates other discrepancies. As well as Act MP Todd Stephenson - has investments in drug companies ....
100%
Are Tesco mentioned on the Register of Pecuniary and Other Specified Interests of Members of Parliament? 🍷🥂
Great read and summary Bernard. Thank you.
Great interview with Ganesh.
Ganesh and everyone else that lives in the real world; "running an economy is not like a household budget".
99% of Government party members: "yes it is, or it bloody-well should be".
1% of Government party members "we know, but if our chaps run it as if it is, democracy falls over and private capital prevails as the sole source of power".
Power over a pile of smouldering ashes, that is.
Excellent summary as always. Another vote to make public please.
Thanks Bernard. Anyone care to hazard a guess what 2028 net issuance is REALLY going to be?
1. The monopoly currency issuer never functionally "borrows" their own currency. It is an interest rate maintenance operation = basic income but only for people who already have money in proportion to how much money they already have.
2. NZ gov might be in a real surplus position given base inflation? So the appropriate policy adjustment is to increase spending, not seek an "offset". Cutting spending would be pro-cyclical on the way down to a recession, a terrible policy. Tax cuts are fine, if they increase purchasing power at the base. So eliminate income tax and GST (or keep all the statutory crud since it's a hassle to vote away, but just set the tax rate to zero). to drive demand for NZD introduce a simple land tax --- saves heaps *in real terms* on compliance costs for GST and income tax.
3. Income taxes are not "paying for" social security, workers pay for social security in real terms. Superannuation should be scrapped, it is a pointless waste of human activity which provides zero real produce for retirees. The Government can always make pension payments when they are due, without question, the "pay for" is in real terms = are we employing everyone to produce the goods retirees desire to consume and that we want them to consume for a decent dignified retirement?