What will happen to National now?

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Forums › Politics › What will happen to National now?

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5885 posts

Uber Geek

#2880010 7-Mar-2022 06:46

ezbee:

You are not being straight with public if you first reaction is lets reduce taxes ?

Not adjusting tax brackets for over ten years and banking the inflation driven wage increase portion of it to make your own books look good is effectively a tax increase.

Especially when inflation is running hot and many are unable to make ends meet. So if you are lucky enough to get a payrise to match inflation, it has to still be more than inflation after taxes.

Otherwise you are going backwards.

Considering the government a) requires inflation as part of the PTA with RBNZ of (ideally) 2% p.a. and b) does not hold RBNZ accountable in any way when inflation overshoots the PTA limits by a factor of 2x, it's frankly immoral for them to then tax the inflation component of people's earning increases as they desperately try to catch up, and framing the fix for this as a 'tax cut' is cynical spin.

GV27

5885 posts

Uber Geek

#2880011 7-Mar-2022 06:59

Also, let's be clear about something, there is a lot of extremely basic neglect of our tax system, almost any government system really. Here's some examples that piss me off no-end:

- Min wage will soon be $44K on the grounds of basic levels of survival, but we take student loan repayments from $20K and up.

- Student loan repayment rate is 12% from that point, but in Aus the starting threshold is $47K and the top rate is 10%.

- Student loan repayments in Aus are also on a sliding scale, so to hit 10%, you have to be earning over $130K.

- On top of that, you earn $4K more than minimum wage and suddenly every additional dollar gets hit with 30 cents in the dollar, lifting your marginal rate.

- Housing assistance grants were left at stupidly low price thresholds for years here ($600K for existing homes when there was almost nothing around for for $600K in Auckland). This has changed recently, but not by much.

- The CSC that unlocks stuff like 'cheaper doctor's visits for a single person living alone is just under $30K, so no full-time minimum wage worker can qualify for it, even if you only earn the actual bare minimum wage.

All of these are basic, inexcusable outcomes of lazy administration and examples of the kind of neglect you can get away with in government systems because "We need to spend that money on other stuff like healthcare" (pro-tip, we will never, ever be able to spend 'enough' money on healthcare) and actually result in a decline in living standards and access to services for people who are relying on them.

All of these are valid things Luxon could have taken aim at, but no, it's more crap about interest deductibility for property investors, who are clearly the most disadvantaged group in the country.

Handle9

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#2880014 7-Mar-2022 07:09

GV27:

All of these are valid things Luxon could have taken aim at, but no, it's more crap about interest deductibility for property investors, who are clearly the most disadvantaged group in the country.

This is the weirdest bit for me. There is plenty to prosecute the government on, they haven’t got a good record on a number of issues but it’s dog whistling to anti mandate nutters and beneficiary bashing.

Getting your base engaged is important but it’s possible to do it without some of this stuff.

GV27

5885 posts

Uber Geek

#2880068 7-Mar-2022 07:39

Handle9:

Getting your base engaged is important but it’s possible to do it without some of this stuff.

There's a tonne of neglected/out of date stuff like this he could pledge to change, if you just want to rack up points for a 'wide-ranging reform' approach then they're such easy wins.

But no, they just keep coming back to the same stuff, over and over again.

Given Labour are no better for actually doing anything, this country seems doomed to tedious stagnation while these idiots argue about whether the problems even exist or whether fixing them is arguably a tax cut or not.

Gold help us all.

quickymart

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#2880081 7-Mar-2022 08:13

GV27:

But no, they just keep coming back to the same stuff, over and over again.

Don't forget roads, National's default transport planning option is always "more roads". Never mind that fuel is basically $3 a litre and it won't be long before it's really expensive to drive too far. But hey, we'll have all these roads with 4 cars on them, right? That's forward thinking right there! 😄

sen8or

1778 posts

Uber Geek

#2880082 7-Mar-2022 08:16

The removal of the interest rate thing is potentially a smart move. The true impact on tax take probably isn't significant, but, the perceived effect of the existing govt putting up more barriers to investment and increasing costs for renters is worth far more. The rental market needs investors, not necessarily the institutional type but mum and dad investors, 1-2 properties spreading the market over a wide base.

Sometimes its not necessarily about the actual effects of the policy, just the optics.

We stagnate because we make not trying too easy. Industries screaming out for workers, but when its simply easier to sit on the dole, the unmotivated masses will do that and then complain how tough life is.

quickymart

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#2880162 7-Mar-2022 11:16

Someone liked what Luxon said though: https://www.newshub.co.nz/home/politics/2022/03/business-leader-backs-christopher-luxon-s-proposal-to-scrap-all-labour-introduced-taxes.html

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quickymart

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#2880177 7-Mar-2022 12:38

Savings between $112-$1043. If you make more, the cut will be higher:

https://www.newshub.co.nz/home/politics/2022/03/a-closer-look-at-national-s-tax-cuts-prime-minister-jacinda-ardern-fears-will-stop-investment-in-health-education.html

A closer look at National's tax cuts Prime Minister Jacinda Ardern fears will stop investment in health, education

GV27

5885 posts

Uber Geek

#2880179 7-Mar-2022 12:41

Luxon might get lucky. Ardern has apparently said we don't have a cost of living crisis on the AM Show, and then disputed that excises were causing our petrol price issue.

Never mind that petrol was $147 a barrel in the 2000s and only ever made it to like $2.2x or something per litre - today we are $1 more expensive per litre and current prices only reflect oil at $115 a barrel. It's now $128 USD a barrel.

This is going to be a very expensive lesson in sleight of hand for all of us.

https://www.reuters.com/business/energy/oil-price-set-surge-further-iranian-talks-delays-2022-03-06/

Now, ask yourself, other than winding back the regional fuel tax in Auckland: what did Luxon promise to do differently that would result in lower fuel bills and less congestion?

Crickets.

But in terms of 'We don't have an X crisis', Ardern may have just had her Key moment.

gzt

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#2880202 7-Mar-2022 13:26

I do wonder why the National party keeps going on about unemployed people. NZ unemployment is somewhere around 3.5% average. I'd expect a lot of those are older people with marginal health conditions and so on.

Recently I heard unemployment numbers for Maori are higher which makes me wonder if there's some thinly disguised racist ranting going on in some section of the National Party the leaders are trying to keep happy.

quickymart

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#2880273 7-Mar-2022 13:57

Even if he got rid of the fuel tax tomorrow, it's only taking 10c a litre off the price. It won't fall to $1.50 or anywhere near this.

Rikkitic

Awrrr
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#2880289 7-Mar-2022 14:39

Aren't we supposed to be encouraging people to shift to more environmentally friendly options? This seems like an excellent way to do it.

Edit: Higher fuel taxes, I mean.

Plesse igmore amd axxept applogies in adbance fir anu typos

GV27

5885 posts

Uber Geek

#2880328 7-Mar-2022 15:07

Rikkitic:

Aren't we supposed to be encouraging people to shift to more environmentally friendly options? This seems like an excellent way to do it.

Edit: Higher fuel taxes, I mean.

That depends, are there any realistic alternatives to driving? Because if not, it's just a tax for living in an area that doesn't have turn-up-and-go public transport - and very few parts of Auckland actually have that.

Don't forget, people already pay through the nose for fuel and deal with congestion - so they have a powerful incentive to find ways to not deal with that. The fact they keep driving suggests that there aren't many viable substitutes for driving yet.

quickymart

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#2880346 7-Mar-2022 15:36

Lots of parts of Auckland do have okay public transport though - I know that while not perfect, it's definitely improved from when I moved here in 2002.

GV27

5885 posts

Uber Geek

#2880423 7-Mar-2022 16:29

quickymart:

Lots of parts of Auckland do have okay public transport though - I know that while not perfect, it's definitely improved from when I moved here in 2002.

Define 'OK'. Are you saying it will get from you from A to B? Well, yea, if you have the time, flexibility and money to spend connecting across multiple services, then eventually it probably will.

However if I want to be at my desk for my start time, the public transport planner on the AT website suggests leaving at 10:32pm the night before, then spending seven hours at my office before my day starts, and then getting home five hours before I have to leave again at 10:30pm the following evening.

I do not live in the wops. I live in an area that is having several thousand houses being added over next five years and I can see the Skytower from my lounge. Driving to work takes me 20 minutes door-to-door in the mornings.

So it feels like there's a long, long way to go before that's a realistic option.

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