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  1. Lesson number one. Nothing is free.
    Muldoon, with his version of a Soviet economy, was delivered the inevitable outcome when (ironically), David Lange informed Sir Piggy and the nation live on TV 1984, that the country was broke!

    Piggy was paying farmers more to produce lamb than the monopoly export board to sell same for. Piggy had two people driving every NZ Road Services (why did the government have to own – which means buy and service) bus. Post & Telegraph would rock up to install a fone with 4 blokes in the van: 1 to drive, 1 to install and two to read the latest rugby news. Everyone had a job. This false economy masked reality.

    And so it went on. Much of what we had was government subsided – which is what (it seems to me) that you support in your post.

    There is the case that the wealthy should be taxed more, to avoid the guillotine of bankruptcy which hovered as a result of Muldoon’s closet socialist sentiments being exposed.

    Do the sums. If you taxed all those earning above $150k pa- 85 cents in the dollar, the increase in the treasury bank account would be now where near what the increase in the treasury vaults would be if the $40 – $80K pa earners were taxed another 2%.

    And of course, the companies – these evil monsters which employ they who need and want a job, and also in many cases the unemployable, could be taxed 50% – not 33 %.

    Problem is, this would hurt the companies employing half a dozen – small companies started my courageous young people who risk a mortgage over their home and rely on those whom they employ, not to crash the plumber’s van and to attend the till without thieving. These are the champions of our economy and to over tax them? – Let’s not talk about being fair – its subjective.

    Increase company tax and the big companies simply bugger off. Re-locate in South East Asia where wages are lower and tax – near 20% and in some place, less. Or BVI.

    As you are well aware, Bomber: my social agenda – (a) putting police before proper law courts and not IPCA for doing bad things (b) legalising dope (c) pro abortion and (c) for gay rights – all of which I either voted for or argue for when I was an MP; is quite different to my leanings when it comes to – economics

    The All Blacks may be chanting: “Bring back Buck”. My chorus is, “Bring back Roger.”

    The answer to increase more tax money in the government coffers is: Reduce company tax to 15%.

    Laffer curve studies demonstrate gains to treasury vaults when corporate tax is reduced.
    Richard Prebble confirmed to me that the immediate impact of lower taxation introduced by the Lange government in the late 80ies, was an increase in IRD revenue. (Thus I provide theory and empirical evidence.(

    When OUR government has more money in the bank; only then can OUR government be as charitable as you seek.

    oops
    Ross

    1. It’s hilarious that you support your theory with a quote from Prebble. The trucking business owner who destroyed all government owned competition to his business.
      The fact is the Martyn’s proposals have been shown to be viable by the Savage government while yours has proven to produce poverty, misery, inequality and immense wealth for a few by you’re beloved Rogernomics.
      And this “Post & Telegraph would rock up to install a fone with 4 blokes in the van: 1 to drive, 1 to install and two to read the latest rugby news.” is just not true. P & T was very profitable and subsidised NZ Post. You destroy all credibility you may have with such ridiculous rhetoric.

    2. Nothing is free – but the equation is wrong.

      All primary wealth is generated through exploitation of natural resources (land, water, air, forests, soils, flora, fauna, fellow human beings, etc.).

      Financial, political and industrial production systems (“manifestation of power”) are providing the framework of thought and action for investment and work (“cost-benefit comparison”) in this exploitation process, determining the time-bound value of its use.

      The process is not static, and functioning in present-day economics because the appropriation of natural resources is free or low-cost (below the exchange value), and warranted by acquired “ownership” of the specific natural recourse.

      Usually, gains made during the exploitation process are privatized by the systems of power; loss and damage are re-distributed as wasted natural resources.

      In principle, the process of capital accumulation is an open arrangement of causes and effects, and the equation changes quickly, if selected parameters are modified or replaced, the assumptions re-established, or the manifestation of power takes over.

      This is where political economy comes into place.

      Counting beans does not necessarily make an economist.

      ……here’s Kiwi film director Justin Pemberton talking about his latest documentary Capital In The 21st Century with Marty Duda for 13th Floor Arts.
      https://www.youtube.com/watch?v=PkRwR5SC7OM

  2. I fail to understand why you & your mates still believe that voting for the conventional globalisation parties will bring about any sort of meaningful change.

    Liberalism in all its forms has run its course, & the serious challenges of our times will not be solved by our ineffectual party political dictatorship & the not fit for purpose parliamentary democracy that perpetuates it.

    As I see it, putting our ideas, energy & talents into growing an anti-globalisation establishment movement, which aims to bring about a broad based national salvation government, makes much more sense.

    An Our Party for Our People & Our Place is a common sense approach & course of action that’s sorely required right now.

  3. I am with you 100% Martyn.

    We need to Nationalise our resources as ‘China does’ as we cant go on selling our economic base from where we made our money from under us.

    Egalitarian society was my upbringing during the 1950’s and it was a time when everyone had enough but just very few millionaires.

  4. So you want to legalise marajuana and then encourage tourists to come here. This means that not only will we have a stoned work force but we will have stoned drivers who are used to driving on the other side of the road on our roads . ACC will need a big boost as will hospital A&E. Let’s hope you fail in your push to make us all pot heads.

    1. That’s an interesting red hearing. I mean who on earth wants impaired drivers around the place.

      The government has tens of billions in unfounded infrastructure investment so the economy is stalled until some money is fund for productivity.

      The idea that this is just about sin is just a straw man.

  5. Gee whizz
    Didn’t realise my view on financing welfare would have caused so much angst!

    Two points arising, if I may:

    The reason I advocate lowering company tax is to increase the revenue stream for IRD so OUR guvmint doesn’t go broke providing help to they who need help. Because OUR guvmint sure as hell did, under Sir Robert Muldoon aka Mr Subsidise.

    AND

    The reason I advocate legalising dope is: https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10733409

    Anyway. No offence intended. No offence taken. Simply a mater of debate.

    1. So I’d like to respond.

      For personal income I’d look at adding brackets in order to get more granularity in the percentages and possibly increase the top end, but the biggest reform is to cut the number of exemptions. In particular with an eye towards taxing externalities or a tax on pollution basically. While keeping those that help the poor and lower middle class. In general a good starting point would be to start by trying to match the current effective rates, but achieve them more directly rather than by letting people who can afford it throw an army of accountants to cut their tax burden, then do some targeted relief for those who need it on the understanding that putting a tax burden on the poor is generally counterproductive economic and comes with far greater personal cost.

      I’d look at cutting the corporate tax so long as I can make it up elsewhere (lower corporate tax, higher top end personal tax for example).

      And I’d start taxing capital gains tax like any other income (throw a few exemptions to encourage retirement savings). And a Negative Income Tax/Earned Income Tax Credit scheme would be an excellent move to replace other social welfare programs, but that is far broader than the tax reform.

      As far as legalising marijuana I mean the gangs are going to get out hustled by tech entrepreneurs. Gangs are the old business model. Once the business model changes the money will dry up and the gangs will be left with decaying club rooms.

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