I don't often cite Kiwiblog here, but this post (the subject and
article it comments on) warrants it IMHO.

An illustration on the folly of trying to defend the indefensible.

https://www.kiwiblog.co.nz/2024/04/hipkins_wrong.html

I agree with Hipkins that now is not the time for tax cuts, but I
don't think Hipkins would agree that now is the time to trim
Government spending on favour of debt repayment. Reducing tax revenue
should be contemplated only when government debt levels are back to
the modern equivalent of pre-Covid times. That is when the Government
can afford to take the taxation revenue hit of indexing tax brackets.


--
Crash McBash

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

On Fri, 26 Apr 2024 13:22:03 +1200, Crash <nogood@dontbother.invalid>
wrote:

I don't often cite Kiwiblog here, but this post (the subject and
article it comments on) warrants it IMHO.

An illustration on the folly of trying to defend the indefensible.

https://www.kiwiblog.co.nz/2024/04/hipkins_wrong.html

I agree with Hipkins that now is not the time for tax cuts, but I
don't think Hipkins would agree that now is the time to trim
Government spending on favour of debt repayment. Reducing tax revenue
should be contemplated only when government debt levels are back to
the modern equivalent of pre-Covid times. That is when the Government
can afford to take the taxation revenue hit of indexing tax brackets.

The previous Government did set about reducing government expenditure
starting in September / October last year to allow for domestic and international economic trends. New Zealand's level of government debt
is well below most countries; New Zealand was wither the only country
or one of a very small number that had an improved credit rating in
the period of the previous government. We have a slightly higher level
of private debt than many other countries - I believe that reflects a
high level of overseas ownership.

The problem the government faces is that it has already committed to significant loss of income from landlords; the economy is slowing
faster as individuals are facing higher costs from local authorities
and higher transport charges (Road user charges etc), and transport difficulties, and most people are aware that tough economic conditions
will apply for some time. Retailers are under pressure and the
economy is slowing faster than anyone would like.

We do however have the capacity to borrow for projects that make
economic sense; in view of the destruction from the Gisborne and
Auckland flooding repairs to main roads have been given priority, but
repairs to rail services and minor roads are also important for
economic recovery. we are also running higher risks through the
cancellation of Cook Straight ferry replacement - to do without a rail
link would cause significant harm, and South Island manufacturers and
primary producers will be concerned about that as well. Sadly some in government are talking again about Public / private partnerships,
which have been shown internationally to not significantly change
construction risks, but to overall have a higher cost than the
government commissioning and paying for the work itself - the Kaikoura
recovery during the Key government was widely regarded as being very
well managed and structured; with lower legal and sign-off problems by
avoiding the complications and additional risks of a PPP.

It is becoming evident that wages are not expected to keep pace with
costs, so the banks are making record profits to send overseas - and
rightly or wrongly, the "squeezed middle" do not appear to believe
that they will get anything more than insignificant benefit from tax
cuts, which they see as increasing risk for services such as health,
police, schools, pubic transport, roads, etc. I have not seen a survey
on right direction / wrong direction for some time however . . .

--- SoupGate-Win32 v1.05
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On Fri, 26 Apr 2024, Crash <nogood@dontbother.invalid> wrote:

I agree with Hipkins that now is not the time for tax cuts

This is an essential difference for voters, that National cuts taxes
and Labour increases them. If you're not on board with this, then you
are a creeping Labour voter of the future.

My radical viewpoint is to abolish the IRD and print money for income.
Then the difference between National and Labour will be how much % of
GDP one should print. The links to inflation will become very clear.


Even Rich would be happy, as this method effectively imposes a wealth
tax. But of course it isn't communist enough to get his nod.

--- SoupGate-Win32 v1.05
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On 2024-04-26, Rich80105 <Rich80105@hotmail.com> wrote:

On Fri, 26 Apr 2024 13:22:03 +1200, Crash <nogood@dontbother.invalid>
wrote:

I don't often cite Kiwiblog here, but this post (the subject and
article it comments on) warrants it IMHO.

An illustration on the folly of trying to defend the indefensible.

https://www.kiwiblog.co.nz/2024/04/hipkins_wrong.html

I agree with Hipkins that now is not the time for tax cuts, but I
don't think Hipkins would agree that now is the time to trim
Government spending on favour of debt repayment. Reducing tax revenue >>should be contemplated only when government debt levels are back to
the modern equivalent of pre-Covid times. That is when the Government
can afford to take the taxation revenue hit of indexing tax brackets.

The previous Government did set about reducing government expenditure starting in September / October last year to allow for domestic and international economic trends. New Zealand's level of government debt
is well below most countries; New Zealand was wither the only country
or one of a very small number that had an improved credit rating in
the period of the previous government.

So then why is Labour opposed to tax cuts? Remember the less well to do
will also get a tax cut?

We have a slightly higher level
of private debt than many other countries - I believe that reflects a
high level of overseas ownership.

The problem the government faces is that it has already committed to significant loss of income from landlords;

What figures $ wise. Also this is going back to being logical. All other businesses are allowed to tax exempt their costs.

Want to drive the private rental housing into the ground then make it not profitable.

the economy is slowing
faster as individuals are facing higher costs from local authorities
and higher transport charges (Road user charges etc), and transport difficulties, and most people are aware that tough economic conditions
will apply for some time. Retailers are under pressure and the
economy is slowing faster than anyone would like.

Its called inflation. Nasty stuff in many ways.

We do however have the capacity to borrow for projects that make
economic sense; in view of the destruction from the Gisborne and
Auckland flooding repairs to main roads have been given priority, but
repairs to rail services and minor roads are also important for
economic recovery. we are also running higher risks through the
cancellation of Cook Straight ferry replacement - to do without a rail
link would cause significant harm, and South Island manufacturers and
primary producers will be concerned about that as well. Sadly some in government are talking again about Public / private partnerships,
which have been shown internationally to not significantly change construction risks, but to overall have a higher cost than the
government commissioning and paying for the work itself - the Kaikoura recovery during the Key government was widely regarded as being very
well managed and structured; with lower legal and sign-off problems by avoiding the complications and additional risks of a PPP.

It is becoming evident that wages are not expected to keep pace with
costs, so the banks are making record profits to send overseas

What is the connection?

- and
rightly or wrongly, the "squeezed middle" do not appear to believe
that they will get anything more than insignificant benefit from tax
cuts, which they see as increasing risk for services such as health,
police, schools, pubic transport, roads, etc. I have not seen a survey
on right direction / wrong direction for some time however . . .

Probably because where you look for these surveys there is only that things
are going right.

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

On 2024-04-26, Willy Nilly <wn@nosuch.com> wrote:

On Fri, 26 Apr 2024, Crash <nogood@dontbother.invalid> wrote:

I agree with Hipkins that now is not the time for tax cuts

This is an essential difference for voters, that National cuts taxes
and Labour increases them. If you're not on board with this, then you
are a creeping Labour voter of the future.

My radical viewpoint is to abolish the IRD and print money for income.

Well banks do that now. Every loas creates money (income) out of thin air. A trick even more amazing than the covid narrative.

So if the IRD is abolished who is going to be the Tax collector.

Then the difference between National and Labour will be how much % of
GDP one should print. The links to inflation will become very clear.

Lead us not into temtation

Even Rich would be happy, as this method effectively imposes a wealth
tax. But of course it isn't communist enough to get his nod.

--- SoupGate-Win32 v1.05
* Origin: fsxNet Usenet Gateway (21:1/5)

On Fri, 26 Apr 2024 05:41:11 GMT, wn@nosuch.com (Willy Nilly) wrote:

On Fri, 26 Apr 2024, Crash <nogood@dontbother.invalid> wrote:

I agree with Hipkins that now is not the time for tax cuts

This is an essential difference for voters, that National cuts taxes
and Labour increases them. If you're not on board with this, then you
are a creeping Labour voter of the future.

My radical viewpoint is to abolish the IRD and print money for income.
Then the difference between National and Labour will be how much % of
GDP one should print. The links to inflation will become very clear.

Even Rich would be happy, as this method effectively imposes a wealth
tax. But of course it isn't communist enough to get his nod.

It may be radical but it does not seem to cover how international
trade would occur - a currency with a fluctuating value from internal
events may be less attractive to buyers and sellers overseas. But at
present the Act1stNat government have handed out a lot of money to
landlords without changing the supply of houses or the demand for
rental accommodation - and making rental properties the No 1
tax-preferred investment - potentially reducing the attractiveness of
shares, or direct investment in businesses.

Then they have triggered a sharp increase in rates to pay for the cuts
to the top tax rate, and they are increasing the cost of transport by increasing registration and fuel taxes. Even with all that they can't
yet say whether they can afford the cut to the top tax rate . . .

So telling us that Hipkins is correct is not really very helpful - why
don't you tell the government?

--- SoupGate-Win32 v1.05
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