Fran O’Sullivan wrote a controversial column in this week’s Sunday Herald. It’s attracted lots of heartfelt support from the economically literate and some equally enthusiastic vitriol from the usual suspects.
You can read the full text here. 90% of what she writes is gospel truth, some of it is a bit outrageous. I’m wondering that she may be being a wee bit provocative for effect.
I have a couple of caveats, but if we adopted her recommendations tomorrow we would be well on the way to turning this country around. We wouldn’t fix everything but it would be a good start for setting up a climate for growth and its resultant prosperity.
The Tax Working Group came up with a lot of sensible policies that government paid for, knew had merit, understood were necessary, and totally ignored .
This, from Dr Gareth Morgan, is one of the ideas that came out of it. I’ve contemplated a similar scenario myself, but Gareth has a greater understanding of the sums involved than I do and can therefore propose something practicable.
Here’s the deal
You pay every resident adult $10,000 p.a.
You scrap all benefits and New Zealand Superannuation along with the expensive and bloated bureaucracy that runs them.
Every dollar earned over and above that $10,000 by individuals or by companies is taxed at a 25c flat rate.
There will be a shortfall which would be paid for by a 1.5% tax on capital: land, buildings and plant.
Once upon a time in a galaxy far away there was a bloke called Phil Goff who looked like leadership material and talked a lot of sense. Then the dreaded Czarina was vanquished by the smiling assassin from Perill Grynch. She scurried off to a lucrative sinecure in New York with a sigh of relief, sensible Phil was sucked into a black hole, and a dysfunctional imposter replaced him.
The Phil Dalek charges out of its lair every week or two, savages the PM with toothless gums, and offers a knee-jerk negative reaction to every government move, regardless of whether or not the attack is justified.
John Key could end world poverty, bring peace to the Middle East by next Friday, and re-invent cold fusion—Phil would proclaim it all the devil’s work. He scratches around for new causes to promote, with little regard to their practicality or lack thereof. Continue reading “Braindead policy on GST”→