Wednesday, May 10, 2006

Rodney back to flat tax?

Rodney Hide continues on a roll of more libertarian ACT policies by saying in a press release:
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"If ACT was writing this year's budget, it would include moves towards a flat tax and a Taxpayer Bill of Rights. A low, flat tax would boost productivity and growth, as well as benefiting Kiwi workers, businesses and communities."
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"Moves toward" weakens it a bit, but it would be nice if ACT went back to its 1996 election policy of a low flat tax (19.5% I recall?). This would be fairer, as there is no way that those on higher incomes consumer ever higher proportions of government services. Abolishing the 39% and 33% rates and cutting the 24% rate to 19.5% would be a great advance in freeing up New Zealanders to enjoy their own wealth, to look after themselves and encourage more skilled people to stay in New Zealand and immigrate there.
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Andrew Falloon is cheering it on, as he should. Not only is it more moral than the status quo and would be a great boost to the economy, but is easy to sell. The more you earn, the more you keep without nanny state looking to confiscate ever greater proportions of your income. The Nats should, in response, be talking about eliminating the top rate of income tax, which is a small step in the same direction (and taking us back to 1999 before Labour introduced it).
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Of course, eliminating the 39% rate and introducing a flat tax are great leaps forward, but not the end game :)

6 comments:

Rick said...

What do you mean "back to?" You keep talking as if Rodney Hide is lost in the woods when really he's on a more libertarian path than you are!

And, FYI, there is no such thing as a "more moral" tax.

writeups said...

A flat tax would be great for New Zealand but only if the other tax follies: GST, FBT, gift duty, taxation of interest, company tax are either eliminated or replaced with a flat tax where say, a 19.5% rate of income tax is the same as a 19.5% company profits tax. That'd be cool.

libertyscott said...

Rick, please explain "really he's on a more libertarian path than you are!"? What is the evidence for this?

You ought to remember, ACT has had 3 income tax policies in its history. 1) Abolish 2) Flat Tax 3) 2 rates of income tax. Rodney has gone from policy 3 to policy 2, which I applaud. You're right there isn't "more moral" it is a bad use of language, but less tax is better and flat tax penalises the productive less than progressive scales of tax.

Writeups- Quite right, company tax should also be cut to 19.5%, FBT and gift duty abolished too. This could be done without dismantling the welfare state, state health and education. That's why GST's abolition should be tied to ending welfare.

Rick said...

Rick, please explain "really he's on a more libertarian path than you are!"? What is the evidence for this?

I await the news that your Libertarianz are on the brink of reversing their ongoing policy of choosing inaction and failure so I may retract that statement.

libertyscott said...

Rick, please do not speak about that of which you know nothing since 2004 if I am right?

Both myself and PC have given Rodney Hide MUCH credit since the election for being more distinctly libertarian. Besides, you comment was that Rodney "is on a more libertarian path". I haven't seen Rodney sit in select committee calling for legalising of marijuana, substantial liberalisation of censorship laws, liberalising marriage to include same sex couples (not just civil unions) and reverting dog laws to common law - I have done all of those things. It is hardly inaction and he is hardly more libertarian than I am.

If you can name the Leader, Deputy Leader, President and Secretary of Libz without looking them up, and roughly the number of votes the leader got in the local body election in 2004 then I can take your comment more seriously. There is reason for optimism in a party that had disaster in 2002.

You left around 2.5 years ago, if you want to find out about what is going on you might care to ask any of the above people, directly. Please do, they are all constructively working hard to sell the message.

Rick said...

I've kept in touch. And I've read the party journal (when it comes out.) Corresponded with the secretary.
Leader is Bernard Darnton- Wellington, Dep Julian Pistorius- Northland, new Pres is Craig Milne- Otago. Didn't need to look it up! Too too easy.

Rodney is a public figure, a libertarian public figure. He fights for libertarianism in the House. He chooses his battles and leads a party where victory is an agenda.

What I object to is Libz condescending to look down on Rodney Hide's attempts as if they're better. Your party gains nothing more from these tragic throes than a little empty purity.