Former NZ Initiate free market acolyte Nicola Willis is amputating the State for ideological reasons.
The game is simple.
Strip the Government’s capacity to bring in revenue via taxation so that there is no money to redistribute in the first place.
The Austerity agenda of borrowing billions for tax cuts we can’t afford to hollow out public service budgets has led the Treasury to warn the government…
Revealed: Tight Budgets force ‘reductions to public services’ – Treasury
Treasury officials have warned the Government that “significant reforms” or “reductions to public services” will be needed in the not-too-distant future if it sticks to its current, restricted spending track.
The Herald can reveal that even with this relatively tight spending, the Government will not post a surplus under the traditional Obegal measure until 2031, which will mark the longest period of Government deficits since the 1979-1994 deficits (which were measured quite differently).
Treasury officials also warned that the Government had planned so much capital investment – spending on items like schools, hospitals and roads – that it might have to cut spending earmarked for public services so it can fund the significant ongoing maintenance of those investments.
…the level of cuts were so extreme it caused the Reserve Bank Governor to stand down and it its generating the momentum for a possible snap election with NZF deeply nervous about Nicola’s next budget massacre.
It has gotten so bad that the IMF are now opening warning us that we need to desperately raise revenue…
IMF calls for Capital Gains Tax or land tax
- The International Monetary Fund (IMF) has again recommended the Government reform the tax system to restart economic growth and reduce future budget deficits, saying a capital gains tax or land value tax would help incentivise productivity-enhancing investment. (See quotes of the day below)
- The IMF also warned of the risk of another mortgage-fueled surge in the housing market. It also cautioned against a loosening of Reserve Bank capital rules that would unleash such a surge, as is being investigated by Finance Minister Nicola Willis.
…when the fucking IMF are warning you that we need to urgently raise taxation, you know shit just got real.
It’s like your drug dealer begging you to go to rehab.
I’ve argued the replacement of Orr by a 4 Aussie Big Bank Stooge is a risk but starving the State of revenue so that you don’t have to redistribute it in the first place is an ideological gamble that risks damaging the entire society.
I don’t think people understand how dangerous this all is to our wider economy, purposely starving the State of revenue to degrade public services until voters scream for privatisation risks causing generational damage.
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ACC privatisation softening up process in action
https://www.stuff.co.nz/nz-news/360615723/three-weeks-ugly-headlines-and-accs-leadership-crisis-just-got-worse
I think you are right but they will have trouble finding an idiot that would want to own it after the last idiot HIH went broke inside a year .
They don’t care who buys it. Knowing this govt they will force ACC to use its future fund to buy itself . That way the govt gets its greedy little hands on that money for nothing. Oh crap, i hope i haven’t given them an idea….
When the drug tsar is telling its pushers to target people they know, then something is up for sure.
Growth growth growth is the latest bull shit mantra .Hey nic and lux you need to spend money to make money .Bull shit has no value to be added to it .Giving tax cuts is a sure way to find a quick way to the bottom of the OECD .We need to claw back the land lord tax cuts and stop people investing in rental property and put that money into rebuilding society so that the whole country gets with the program .We will never build a great country if 90% are deemed not to matter .
The money supply has been steadily increasing every year by about 3% for the last 40 years and as of yet all boats have not risen. Sure we can give property speculators additional money but it doesn’t stop the fact that speculators are as yet managing able to solve the housing crises. Any tax dollars given to speculators is just money taken away from children. Most kiwis don’t find theft to be a thrill but see more can be proud of 13,000 children stuck in school lunch bottle necks. The missing element here is authority and accountability but most of all force. Currently this government is protected. Where ever the vulnerable are suffering it requires men utilising force.
@ MB you write:
“I don’t think people understand how dangerous this all is to our wider economy, purposely starving the State of revenue to degrade public services until voters scream for privatisation risks causing generational damage.”
But that’s what we’ve got. And, that’s why we’re at the point that we’re at, at this very moment, and it’s that at this very moment we’re fucked. Some others might have a more polite, less agricultural way of putting it but that’s not my style.
I’ve been writing that when I drive through the countryside I don’t see stock and by stock I don’t mean pretty little people fiddling with the money of others. I mean animal stock. Cows and sheep an’ that an’ what not.
We AO/NZ’ers used to be able to produce enough to feed 40 million others and then there was the wool etc. For a small-population country like AO/NZ that’s a vast exports resource bringing in huge revenues so where the fuck is the money!? Where is our money? Who has it?
It’s my humble opinion that [we’re] NOW being set up to fail. Our exporting sector’s being deliberately sabotaged so that our only option is to become the minions to our saboteurs; Australia and rich urban Kiwi agent provocateurs
Great to read that you’re getting onto this @ MB.