LoCarb

Flat tax: definitely won't get my vote then.

Sounds like he has a strange mix of Left & Right policies?

scrubbedexpat094

I'm thinking of starting my own political party. It will be called The Hamster Party and I shall be it's glorious leader. Policies will include:

1) Allowing the importation of Syrian hamsters (we will look at the future importation of other hamster breeds as & when).

2) The world's first Hamster-themed fun park and resort.

3) Anyone heading to Australia must take a couple of possums (back) with them.

4) Still working on this one.

5) And this one!

Right, who's in?

Kotare

Let's go back to rotten boroughs where you ply me with money or drink for my vote - then I am in :-)

scrubbedexpat094

That's me, a rotten candidate for a rotten borough . It'll have to be drink, as I don't have any dosh. I'm prepared to throw in some cake.

Genesis

And what would those volumes speak about this type of person? Please educate those of us who are attracted to this party and its leader.

LoCarb

I like Labour's new policy on youth unemployment.

Halfway there to MMT's Job Guarantee.

Some sense at last

chocolate cake

Flat rate tax and a capital gains tax have been rumoured. Neither would be a bad idea, if the former is it at an appropriate rate.

Be interested if there's anything on state pension age, rather than Key's elephant in the room ignore it and 'not under my watch'.

It was Labour policy at the last two elections, but clearly unpopular (sometimes the truth hurts) and has simply been dropped.

So now both major parties ignoring the issue.

Instead ignoring it simply means it will need to be raised in the future with much much less notice, instead of giving people time to prepare.

Yes, some people aren't able to work past 65, and so should be on some other benefit instead. When the state pension at 65 was brought, most were living only 5 years longer.

In the UK for all Tony Blair's faults he did at least make some to address the issue, which is has been addressed in other European countries plus Australia, with NZ out of line.

Amplifying the issue is Key's government stopping payments to the super fund too, and creating artificial surpluses that will no doubt be spent on tax cuts next year.

LoCarb

Flat tax:
Think this through.... if total tax take is to remain the same, a flat tax means the poor will pay more tax and the wealthy will pay less. How do you justify that?

Pensions:
The government issues the currency, so it is never financially constrained, only resource constrained.

The only restriction on future pension payments is whether or not there are enough resources in the country the government can purchase for the care of the elderly, e.g. are there enough doctors, nurses, rest homes, zimmer frames, incontinence pads etc.

It's never a question of money. Modern Monetary Theory (MMT) clearly explains this.

If the resourses are available, the government can purchase them.

So what we need to do is not save money, but make sure we are training sufficient workers to care for the elderly in the future and build the infrastructure that will be needed.

Woodlea

At the moment the wealthy don't actually pay tax, they avoid it as they consider it grossly unfair, which of course it is. The object of the flat tax is to encourage the wealthy to pay tax.

LoCarb

So we shouldn't pay tax? Is that what you are saying?

Woodlea

Of course not. Everyone should pay tax, apart from kids in my opinion.

SSky

The poor old working class shouldn't have to pay tax up to a certain rate on their labour. I'd vote for that.

Kotare

Interesting statement - given the last UK figure I saw quoted was the top 1% of income earners paid 40% of the total income tax take, but if it is correct the bottom 50% paid no tax (net) it leaves me in the squeezed middle.

LoCarb

Not forgetting 20% VAT

No personal allowance in NZ so the poor pay their share of income tax + 15% GST.

Richard Murphy's take on flat tax:

Tax Research UK » Flat taxes and the desire to increase inequality

chocolate cake

Flat rate tax? with a reasonable personal allowance which NZ doesn't have (every dollar is taxed, except for messy family credit rebates), a flat rate tax can indeed be fair. The richer do pay more, rather than finding ways to avoid things.
Likewise a capital gains tax, again fair.

Pensions - sorry I don't see your point. 'The government issues the currency, so it is never financially constrained, only resource constrained', you suggesting when we can't afford to pay the increased cost of pensions because we're not providing for things now or warning people in advance that the state retirement age will be going up in a staged manner (like most other reasonable countries have done), instead we simply issue more money later, that's simply going to create inflation, no such thing as free money, unless your numbers have come up in tonight's lottery.