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Marc My Words: Making Cents Makes More Sense!

Marc My Words.
From Marc Alexander MP 7 November 2003
United Future NZ-Christchurch Supplement

Making cents makes more sense!

Helen Clark's government is largely supported by the largesse it extends to those who, in turn, reward the hand that feeds them, with their vote.

These benefits handed out like lollies, feed a dependence that only serves the interest of the State. And the public is becoming aware that governments are costly and wasteful. The financial burden of government is carried by the people themselves.

The legacy of such an expansion of dependence means that while there are 870,000 adults who mainly rely on the State for their benefits - there are only 1,550,000 adults to pay for them. Looking at it another way, for every full-time tax paying worker there are 56 full-time beneficiaries!

Clearly this is untenable in the long term. The current taxes that need to be paid through income tax, GST, excise, company taxes and levies are unsustainable and cannot but fuel dependency in two crucial ways. First, by imposing an impost on earnings, thus restricting effective consumption power and driving down the value of remuneration, at the same time raising the margin of dependence.

Second, the economic drag that unreasonable taxation places upon the viability of businesses simply dampens innovation - gives reasons for the flight of talent and capital out of the country - and reduces economic activity. Either way, the result will be a less fertile economic landscape in which to grow employment possibilities and the wealth of this nation.

It's time, surely, for the Government to help enlarge the 'cake' before greedily considering how it's to be sliced up. Business must be able to stay competitive, grow and make a profit - and that before the Government can step in and do the taxing.

Otherwise the baker needn't bother!


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