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| The high moral ground |
The ACT Party's "alternative budget" announced today brings no surprises. It is predictably right-wing with most benefits going to the wealthy and most of the burden to poor and average New Zealanders. Consider, for instance, the number of job loses with itsproposed cuts and restructuring.
ACT's main aim is to cut taxation for the rich paid for though a wide range of cuts on government expenditure, and an increase to the superannuation age, to return the government to surplus within a year. The age of superannuation eligibility would be increased at a rate of two months per year until it reaches age 67, at which point it would be indexed to life expectancy with no allowances made for different ethnic life expectancies.
The only increase in spending would be on defence to 2 % of GDP, an increase of about $61.3 million over four years., and a new $250 million-a-year fund called the Teaching Excellence Reward Fund,fund which will allow school principals to garnish their best teachers' wages, the assumption being that present awards reward the unworthy.
Overall, the rich will benefit most and the rest of us will pay for it.
The cuts in spending would reverse various efforts to curb climate change, freeze the minimum wage, cut thousands of public sector jobs, and abolish various government agencies including the Human Rights Commission, Office for Crown-Māori Relations, and Ministries for Women, Māori Development, Pacific Peoples and Ethnic Communities.
Other proposed cuts include spending on the Climate Change Commission Energy Efficiency and Conservation Authority, Freshwater and Land Use Programme, Forestry Programme, and Climate Emergency Response Fund's operating and capital expenditure. The Zero Carbon Act would be repealed and contributions to the Superannuation Fund and Kiwisaver subsidies halted. It would reverse the ban on companies exploring for oil and gas.
Still further cuts would include the Fees-free programme for university, restricted Winter Energy payments, First Home Grants and Progressive Home Ownership schemes, R&D Tax Credit, Callaghan Innovation, Covid-19 Horticulture Subsidies, Growth and Development Spending, the Provincial Growth Fund, the Cultural Sector Regeneration Fund, New Market Operations Spending, Cultural Sector Regeneration Fund, Domestic and international film subsidies, Jobs for Nature, Biodiversity Jobs, Pest Control Jobs, Waterways Jobs, Pine Control Jobs and He Poutama Rangatahi, Regional Skills Leadership Groups, Workforce Development Councils and "Shovel-Ready" infrastructure projects.
The 90-day trial period for workers would be reintroduced and fair pay agreements and the social insurance scheme abandoned.
Shares in various state-owned enterprises would be sold off, 49% of NZ Post, KiwiRail, Transpower, KiwiBank and other corporations, and 100% of LandCare, resulting more money for tax cuts but less dividends for government, and less influence on essential services.
The new tax regime would create just two brackets: 17.5% for earnings below $70,000, and 28% for earnings above that - delivering significant benefits to those on the higher end of the pay scale. This compares to the current brackets of earnings up to $14,000 taxed at 10.5 percent, between that and $48,000 at 17.5 percent, income between $48,000 and $70,000 at 30 percent, between $70,000 and $180,000 at 33%, and income over $180,000 taxed at 39%.
There you have it. What more can I say other than that I am astounded a NZ political party in the 21st cetury could be so blatantly "selfish."
-- ACW
Related
https://thedailyblog.co.nz/2022/05/11/mediawatch-how-politically-shallow-is-rnz-take-david-seymour-vs-willie-jackson-coverage/
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