Tuesday, October 13, 2009

ZenTiger ACT show some life

NZ Doomed To Status Quo [Found on Scoop]
It's good to see the ACT Party speaking out against John Key. Key apparently has dismissed the idea of flat tax out of hand. That action simply reinforces my point - there is no serious consideration of tax reform, this will end up as just another exercise to broaden the tax base with the introduction of new taxes and superficial fiddling of the rates.

That is my main concern about the tax review - any serious discussion of options like Flat Tax and other tax systems (such as the USA Fair Tax proposal) would usually be welcome, but only when we have open minds at the table.

John Key has ruled out any such options out of hand, thus prompting Sir Roger Douglas to inject some passion into a debate National do not want to bother with. About time!

ACT New Zealand Finance spokesman Sir Roger Douglas today urged Prime Minister John Key to consider a flat tax, following his decision to blindly dismiss the work Treasury was doing.

“If John Key really wants to have an economic recovery – boosting productivity and exports - then he is being foolhardy to reject out of hand the idea of a flat tax, when instead he should consider all the options on the table” Sir Roger said.

“Incentives matter. A flat and low rate of tax would provide incentives for people to work, for people to seek promotions, and for people to upskill. Unfortunately, current levels of tax –combined with the abatement of benefits – means that the incentives to work harder and get ahead are dulled. Many of our best and brightest are leaving New Zealand for low taxes overseas.

“If Mr Key is concerned about equity, then a flat tax can be designed that is equitable as well. Simply have a high tax free threshold with a minimum guaranteed income for individuals provided through tax credits. The idea that a flat tax is inequitable is nonsense.

“The message this sends is very clear: Mr Key is perfectly happy to lead a Government that spends around 40 percent of GDP, wasting billions of taxpayers’ dollars and churns many of those tax dollars back to the people who paid them. He is more concerned about how he will look in two years’ time rather than actually doing his job, and restoring this nation to economic prosperity.

“The modus operandi of the National Party is becoming fairly clear. They constantly talk about the need to change, about the need to boost productivity, but every option except the status quo seems to be off the table. Unfortunately for National, good ideas never die” Sir Roger said.

1 comment(s):

Anonymous said...

Excellent article!
I mean, *FFS* - *where are the bold policies*, John?

In case you hadn't noticed, John, the status-quo will get us nowhere! For goodness sake, we elected you guys because you were supposed to be different, yet you're looking more and more like Helen Clark in a suit. Ewwwww... as if the original wasn't bad enough....

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