Wednesday, October 08, 2008

Understanding Nat's tax policy

So what are the Nats going to do? It's not so simple, but it is a step forward.

The Independent Earner Rebate is a fudge for extending Working for Families to single people, which is ok in itself, but complicates the tax system. Simpler, but more controversial to do away with Working for Families altogether.

The top tax rate inches down to 37% over 2 years, and the bottom rate from 21% to.... 20%! The threshold for reaching the 33% rate moves up to NZ$50,000, which is a step forward. Be grateful for small mercies, for that is what they are. If you want more, it's clear you'll have to vote for ACT, Libertarianz or United Future even (eeeks).

On top of that the Nats are maintaining a growth in real terms in state dependency on the grand fraud scheme known as national superannuation. You will continue to pay taxes for your parent's retirement in the hope that your children and other people's children will do the same. You will continue to pay taxes "towards retirement" and your estate will get absolutely nothing whatsoever if you die the day before 64, you'll get what the state says you get regardless of whether it invested the money wisely or not.

Yes I know most New Zealanders don't understand that it is fraud, yes I know that engaging in a rational debate about this sort of policy is beyond the feeble minds in much of the media, especially television, but why increase the dependency?

Roger Douglas understood the fraud of national superannuation only too well, although his solution was not one I agreed with. For National to abandon even discussing people saving for their own retirement, shows its great fear of the Muldoonist Grey Power lobby, and intellectual and communications vacuousness.

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