Tuesday, February 10, 2009

A politician who understands

Sir Roger Douglas is showing his value as an MP, by opposing the government's economic "package" in words, although he is unlikely to vote against supply in the House. At the very least he isn't following the sheeple Keynesians who think there is one solution, when that medicine may prove to simply delay the inevitable economic realignment.

Stuff reports Douglas saying:

"When international credit is particularly tight, the Government has announced plans to borrow and spend on infrastructure projects.

"We have now been put on notice that our credit rating may be downgraded."

Sir Roger said New Zealand needed lower spending and lower taxes.

Unless both measures are adopted our children will have to pay back the borrowed money, and interest, in the future, he said.

"The Government is now mortgaging our children for the next round of spending increases."

Citizens have become more concerned with "dividing the pie rather than growing it" and politicians "merely mirror the sentiment" of voters.

He's right of course, but then he shows Bill English up so easily.

Douglas has a far more useful solution than spending your childrens' taxes:

He wants a tax system where an individual's first $30,000 would be tax-free, above that they would be taxed at a flat rate.

The flat rate, and company tax, would be reduced to 15 percent over the next 15 years.

Families with children would receive their first $50,000 tax-free with an increased tax-free threshold based on the number of children.

Families would be guaranteed a minimum income boosted by tax credits if they earned below the threshold.

The flip-side is that individuals would have to foot the bill for their own retirement, healthcare and insurance.

Yes amazing, low flat tax and you'd have to pay for healthcare and your retirement. Sadly though, most New Zealanders are too lazy, too scared and too much like children to want to actually be responsible for themselves.

The report shows a lack of understanding by the reporter, as Douglas says it would be optional to either go for his choice or pay taxes at the moment. THAT is where the real policy revolution should be.

Imagine that - pay the current taxes to access state health, education and promises of pensions OR opt out, get most of your income tax back and don't go crying to Nanny if you stuffed up.

You wont get it voting National.

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