Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

ACT Declares May 3 Tax Freedom Day

The ACT Party has declared Thursday May 3 Tax Freedom Day.

“It’s the day we stop working for the government and start working for ourselves and our families,” ACT leader Richard Prebble said.

“The government takes 34 percent of all we produce. That means out of 365 days this year, we’re working 123 days for the government.

“In Australia, it’s just 100 days,” Mr Prebble said.

The Labour/Alliance coalition government has budgeted to spend a record $38 billion this year. It works out at about $200 a week for every man, woman and child.

“To calculate what politicians spend on behalf of your household just multiply the number at home by $200 a week. If there are two of you, your share is $400 a week. If there are five, it’s $1000.”

ACT has provided a breakdown of how the government spends your $200 a week. - $3.35 goes to the police to keep us safe - $3.18 on courts and jails - $6.05 is spent defending the country - $5.26 is the cost of roading - $9 for the civil service.

“So for about $27 we can have the criminals chased, convicted and locked up, roads to drive on, an army, navy and air force to defend our shores, and core services,” Mr Prebble said.

“So what do we get for the other $173? That’s where we get into the big spending.”

$76.48 a week is the cost of social welfare per person - health costs $34.74 for each man, woman and child (about $139 for a family of four) - education costs $32.60 - servicing debt run up by past governments costs $15 a week - $3.60 goes on business development and job-creation schemes - culture, heritage and sport take $1.76 Other assorted expenditure takes the total up to $200.

“Social welfare is the government’s number one priority and takes 26 days of your work this year,” Mr Prebble said.

“Police is the government’s 10th priority and takes just two days.

“If New Zealanders were asked to rank their spending priorities, would they put beneficiaries number one and police number eight? I suspect we would get a different result if households were asked how much they wanted politicians to spend.

“The answer may well prove something near $100 a week. This is the amount of tax and government expenditure that Inland Revenue studies show is the most congenial to job creation, high wage growth and tax compliance.”

Mr Prebble said ACT was doing a survey of 95,000 households, asking how much they thought they should pay in tax and where it should go.

“ACT intends presenting the results to Parliament – before the Budget – to help the government get its priorities right,” he said.

In the 1920, the government took just 12 percent of all we produced. The politicians grabbed a third more in the 1930s to increase the tax take to 16 percent. By the 1940s the state was taking one dollar in four.

Through the 1950s and 60s the tax take was relatively stable at about 25 percent. The 1970s saw a jump to 27 percent. In the 1980s it rose to 31 percent. In the first half of the 1990s we saw another jump to 35 percent.

Mr Prebble said if local body rates and government charges were added, the total taken by government would be about 41 percent of GDP.

The percentage would be much higher again if only working households were included in the calculation.

“Many people are not really taxpayers. The income tax on benefits is nominal and it’s all taxpayer money anyway. So taxpaying households work for the government most of the year,” he said.

ACT intends to also calculate Tax Freedom Day for a working family.

“For households paying 33 percent income tax, when you add GST and fuel taxes, it’s got to be in July and for those on 39 cents, probably August,” Mr Prebble said.

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Rebuilding: Silvia Cartwright To Lead Inquiry Into EQC

“The inquiry will be the first of its kind under the Public Inquiries Act 2013 and will have all the powers of a Royal Commission, be independent of Government and make its report directly to the Governor-General.

“The aim of the inquiry is to learn from the experience of the Canterbury earthquakes and ensure that the Earthquake Commission is fit for purpose in future events.

“The insurance system as a whole, including EQC’s role in that system, needs to be ready to deliver services to those affected by the next big event – whenever or wherever that happens." More>>

 

Gordon Campbell: On The Royal Commission Into Child Abuse

Obviously, it is good news that the coalition government has broadened the scope of its Royal Commission into the abuse of children, beyond its previous focus on children in state care. More>>

ALSO:

Cases Delayed: Court Staff Refuse To Handle Sentencing Papers

Dozens of court cases have reportedly been delayed, as court staff escalate industrial action at two Auckland courts by enforcing a ban on handling sentencing papers. More>>

ALSO:

Education: Primary Teachers Rolling Strikes

RNZ Report: More than 100,000 primary school students in Auckland will be home from school today as teachers and principals walk off the job for the second time this year. It's the start of a week of rolling one-day strikes around the country, after the collapse of contract negotiations last Thursday. More>>

ALSO:

"Process Was Sound": Inquiry Into Haumaha Appointment Released

The Inquiry’s purpose was to examine, identify, and report on the adequacy of the process that led to the appointment. It found the process was sound and no available relevant information was omitted. More>>

ALSO:

Govt Loses In Supreme Court: Call For Debate On Prisoners' Right To Vote

The court earlier this week upheld a High Court decision which found that a law restricting a prisoner's right to vote was inconsistent with the Bill of Rights. More>>

ALSO:

Shenanigans: NZ First Accepts Jami-Lee Ross Proxy Vote

The New Zealand First caucus strongly believes that in terms of the Electoral Integrity Amendment Act, that someone in Mr Ross’ position should resign his seat... the New Zealand First Whip will use Mr Ross’ proxy–to be exercised at all times in support of the vote of the National Party... More>>

ALSO:

Call For Conversation: Do You Know What Data Is Being Collected About You?

New Zealand Maori Council has called on a national conversation when it comes to data sovereignty asking the question “just how many people know what data is being collected, why and how is it being used?” More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels