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.

Helen uses the budget deficit

Economy tight?

Ah who cares - borrow from future taxpayers to get your own plane to shuttle you to a Grey Power meeting, as the NZ Herald reports the PM asking the air force to fly her to make a speech.

So taxpayers pay for her to fly to make a speech - but it isn't electioneering no!! Glad to hear it, John Key can expect the same thing then can he? He just needs an invite as Leader of the Opposition. In fact Rodney Hide should get one as the MP for Epsom.

More Labour fleecing the taxpayer to go do some electioneering in anything but name.

The leftwing Muldoon/formerly Winston supporting Grey Power didn't mind either, no doubt because most of them will be dead by the time the taxes need to be found to pay back the deficit, and they all worship nanny state providing retirement, health care and everything else.

More fuel tax thanks to Labour

and the Greens, and NZ First, and United Future and Jim Anderton.

2c a litre next year, rising to 9.5c a litre by 2011. Yes, you needed that didn't you?

7c of it is to electrify the Auckland passenger rail network, which shows you how much of a great saving that will be, because fares can't recover that cost.
1c is for further upgrades to Auckland's rail network.
1c to help build the Penlink highway in Rodney District
0.5c to upgrade ferry terminals and a new ticketing system

Well it IS a Labour government.

National opposed it, but big surprise what did John Key say in response? *baaaahh meeeeee toooo* Getting used to National opposing policies it just never changes when it is in government? Getting used to wondering what the hell the point is in voting National yet?

The NZ Herald reported he "acknowledged a fuel tax as a "legitimate way" of raising money for electrification, but was concerned at the speed with which it would go up to 9.5c"

Meanwhile, according to the NZ Herald the rail worshipping Greens are unhappy that a small part of the new Auckland regional fuel tax, which largely comes from motorists is to be spent on - a road!! Yes, outrageous really - motorists paying for a road, when they should be happy to be paying for transport modes they don't use, and which aren't even within 10kms of them (rail). Given motorists on the North Shore will pay this new fuel tax and wont get a railway, maybe the Greens might ask why they should be paying this tax at all?

The Greens think the proposed Penlink road/bridge, to link Whangaparaoa Peninsula with the Northern Motorway, is inconsistent with the Auckland Regional Land Transport Strategy - a document that before Labour was barely relevant to transport planning (fortunately). It calls the Penlink project "pork-barrelling of the worst kind". Not that the Greens believe in special subsidies for projects no - I mean the Wellington trolley buses for example...

Unbelievable. So pillaging the pockets of road users, car users, taxi companies, bus and truck companies to pay the costs of building an electric rail network isn't pork- no, because those who use it wont be paying for it, but those who don't use it will.

Now the Penlink project was once meant to be a toll road, but its costs have blown well out and it is no longer viable - which tells you that it shouldn't be getting built at all as not enough revenue can be gained from tolls to pay for it - but for the Greens to feel blasphemed against because a new petrol tax may have less than 15% of its revenue spent on a road, tells you how disconnected from user pays they are.

Just think if car usage dropped 20% there wouldn't be enough money to waste on subsidising railways hmmm.

Maori Party campaign - what's it all about?

Not PC has blogged about how some of the Maori Party policies look a lot like some Libertarianz ones. That being less tax, particularly introducing a rather large income tax free threshold. Not bad on the face of it, but what else is the party campaigning on? Is it a new vision for Maori, distinct from what Labour offers, or is it just recycled socialism with a strong nationalist flavour (yes I avoided the obvious misuse of both words)?

It is easy for me on the small government end of the spectrum to dismiss this party as Marxist racists, but there is something more to it - have no bones about it, I don't like parties based on race, and many in the Maori party have Marxist roots, but is it all bad?

Well the NZ Herald report on the launch indicated that the party is committed to the Treaty being part of a constitution. Tariana Turia said "Certainly we would like to see in future a constitution that is underpinned by the Treaty and we don't think you can have a constitution for this land without the Treaty being a significant part of it" which raises more importantly the issue about what it really means. However, the party realistically sees republican status a long time away so isn't focusing on it.

Of greater importance is overturning the Foreshore and Seabed Act - which from a libertarian point of view is about applying private property rights to those areas. That's another debate, and I am unsure if the Maori Party really understands private property rights, but that doesn't mean that it isn't open.

However then it wants to entrench the Maori seats - pure self interest, and pure democratic separatism. The Maori Party knows it may struggle to get 5% of the party vote if the Maori seats disappear after all.

It's worth noting how the Maori Party condemned the Ruatoki raids, given the evidence the Police held at the time, and I have noted before its support for Cuban communist agents. Both suggesting a radical leftwing side that is far from supportive of individual freedom. Note also that for a while it refused to judge the

It previously supported court action wanting more money for welfare recipients.

It previously treated US action in Iraq as equivalent to Islamist action.

The NZ Herald published a Q & A with Tariana Turia. Her big drive is clearly Maori, she couldn't care that much about everyone else with statements like "my vision is that our people are restored to being strong and independent people so that they can contribute to their own well-being" as quite objectivist as that is on first appearance - it's still "our people".

However, it is very clear that Turia knows that welfare does a lot of harm

"I don't like the word welfare and I think what we want to do is encourage our people to be independent of welfare. We don't want welfarism to be their goal in life. We want them to be independent people, not having to rely on state agencies, but restoring that same courage that our tupuna had to stand on their own two feet and make their way in life. That's what we want for our people. Our main focus is on whanau ora - the well being of family and what it takes to make them well, healthy, independent, standing on their own two feet."

That in itself is encouraging - of course Working for Families is all about that, but is Maori Party policy consistent with this?

She further says "One of the things we want to do is unbundle all of the money that's being spent on Maori people and we want to know how it's being spent and what the outcomes have been." That is a start too. It should reveal how appallingly wasteful state monopolies are.

Yet this same woman once said that it was impossible for Maori to be racist.

She said that all Maori deserved an apology, presumably because they are all victims.

The same party says that banning gang patches (which i approve) is like how Jews were singled out in Nazi Germany.

So what a mismash. A bizarre collection of a desire for Maori to be successful individuals, but also clearly separatist. A view of the world which suggests that Africans can't be condemned as much as non-Africans, that Nazism was just another period of oppression and that Cuba is just another form of self determination.

There is some recognition that welfare doesn't work, that violence in Maori communities is damnable and that education and self esteem are answers, but it is too much rooted in the power of the state. Perhaps most sad is how much the Maori Party is rooted in its own nationalism. It isn't explicitly racism in that it denigrates others, but it lifts Maori as a priority above all others - which, of course, is what the Maori seats do.

Maori voters clearly see something in the Maori Party, more as a clear alternative to Labour - one not addicted to the arrogance of power, but actually interested in making a difference, but it is a difference rooted in the left, state power and nationalism - itself a rather banal concept. Identity politics is tribal, and it is what sadly causes far too much conflict - the idea that your ethnic identity is paramount when you consider how to treat others.

It seems most of all to be pragmatic, not guided by ideology at times, except when it is anti-American, sceptical about Western values and avowedly nationalistic about being preferential towards Maori. For that it wont ever be a party that can grow beyond the Maori seats. For now, as long as the Maori seats remain - as long as the National Party thinks it needs the Maori Party, to weaken Labour - this will remain an unfortunate part of New Zealand politics.

For quite simply, Maori are more political diverse than that represented by one political party - it should never be "I am Maori, therefore I vote Maori Party". Yet is that not what the Maori Party is advocating?

European socialism working well then?

BBC reports "World stock markets have plunged after government bank bail-outs in the US and Europe failed to stem fears of slower global economic growth."

Confidence has been rattled, big time, and the European interventionist governments can't resolve their own banking system, after what the Economist described as schadenfreude about the US financial crisis. Europe's more left leaning governments saw it as part and parcel of Yankee wild wild west capitalism - gee how everything looks as bad or worse close to home.

Sarkozy, once seen as the Thatcher of France is no more. The Economist reports:

"In the space of three days, he twice laid into free-market capitalism. “Laissez-faire is finished,” he announced in Toulon. “The all-powerful market that is always right is finished.” It is not just rhetoric. With unemployment climbing, Mr Sarkozy has launched a scheme of state subsidies to supplement low pay, paid for by an extra 1.1% tax on capital income that dismayed his own party’s deputies. Talk of tax cuts has been shelved. " at the same time as saying "that “capitalism is the system that has enabled the extraordinary development of western civilisation,” adding firmly that “anti-capitalism offers no solution to the current crisis.”"

It's not only the USA that printed money indirectly through central banks offering excess credit.