Free Press :ACT’s regular bulletin

Trudeau I

As a conviction politician, Pierre Trudeau changed Canada. Mostly for the worse, but he did have some good convictions such as declaring that the ‘state has no place in the bedroom.’

Take II
Prime Minister Justin Trudeau looks poised to legalise Assisted Dying in all of Canada. The Supreme Court said making people with terminal conditions choose between lonely suicide and ongoing suffering was a ‘cruel choice’ and inconsistent with the charter of rights and freedoms (introduced 34 years ago by Trudeau I).

The Bill
The bill is not dissimilar to David Seymour’s End of Life Choice Bill. It allows people at the end of their life who are suffering intolerably to choose how they go, safeguarded by the rule of law. If anything the Canadians are more radical, allowing people to make an advanced directive (i.e. sign a declaration that you’d like an assisted death in the future if you yourself lose the ability to decide).

The Politics
After the Trudeau Liberal landslide earlier this year, the legislation will almost certainly pass as a Government Bill. It is a shame that the Lecretia Seales case has not led to the Government of New Zealand showing the same leadership.

What’s Happening Here?
We are often asked what is happening with Assisted Dying in New Zealand. Two things. The Health Select Committee is considering Maryan Street’s petition on public attitudes to Assisted Dying. Public feedback has overwhelmed the Clerk of the committee. The Committee is expected to produce a report but no bill. David Seymour’s End of Life Choice Bill remains in the ballot where it is literally the luck of the draw.

The Odds
There are about 73 bills in the ballot at any given time. How many are drawn out depends on what happens with other bills, for example how many get voted down at first reading. We expect about a dozen to be drawn so David’s bill has about a one-in-five chance this year. If it is drawn, we will be ready.

A Beat Up
Free Press has sought the highest quality advice on the Panama Papers release. It is a beat up of the highest order. David Seymour told a journalist this and they had conniptions: ‘b…b…but, 60,000 pages say New Zealand is a tax haven.’ Of course none of the pages say that but the journo’s question tells us how some in the New Zealand press think.

Issue One: Global Tax Competition
While not directly connected to the Panama Papers, there is a global campaign against big-name companies alleged to not pay their ‘fair share.’ Even the Paris-based OECD concedes that there is little proof of Base Erosion and Profit Shifting to back up the political clamour surrounding it.

Wait, What?
The OECD is hardly filled with Ayn Rand types. Nonetheless its ‘objective and comprehensive’ report ‘Addressing Base Erosion and Profit Shifting’ says: Governments get more company tax as a percentage of GDP than they did 20 years ago, despite nearly every one having dropped their company rates.

Why Have They Dropped their Rates?
Almost every government has been slashing company tax rates. The average rate among OECD countries was 32.6% in the year 2000. By 2011 it was 25.4%. They are doing it to compete for company tax revenues, and now accuse companies of shifting their activities.

Meanwhile in Aotearoa
Our company tax rate is 28 per cent. The OECD countries (mostly European welfare states) have leapfrogged us. New Zealand has an imputation credit regime that is the envy of the world, but all countries have their own exemptions so our effective tax rate on foreign capital is still relatively high.

Who was behind the Panama Paper leak?
The European welfare states are stuffed. High taxes, big debts, bad demographics. Their inflexible labour markets shut out newcomers, which leads to high unemployment and is one driver of terrorism. They need to reform their policies and cut their taxes to grow, but instead they are busy trying to stop taxpayers escaping.

ACT’s Take
All countries are now competing for investment activity by lowering their taxes on it. ACT says cut corporate welfare and use the savings to cut the company tax rate. Make profitable businesses competitive on the world stage.

Issue Two: Civil Liberties
Once upon a time the Green Party stuck up for civil liberties, such as the Free Tibet movement. When Panama hit they tabled a bill to publish details of all foreign trusts held in New Zealand. How many people under oppressive regimes would be in danger of violent extortion if these details were revealed? We miss the principled days of Jeanette Fitzsimons and Rod Donald.

Issue Three: Tall Poppies
John Shewan is a man of impeccable character. The attempted character assassinations by Winston Peters under parliamentary privilege are a disgrace. The sad thing is he probably could say the same in public because a test for libel is that a reasonable person would believe you.

But What About the Trusts?
Over the past decade there has been an enormous increase in information sharing amongst tax departments. Despite the beat up, New Zealand has signed every major tax information sharing agreement and responded to every foreign request for information. The ball is back in the beaters’ court, what exactly do they want New Zealand law to be? The most telling thing is they can’t tell you.

Meet the Mayors
Closer to home (Aucklanders) if you’d like to meet Vic Crone, Phil Goff, and Mark Thomas and quiz them on their mayoral ambitions, ACT is hosting drinks and pizza with the three of them on Wednesday 27th in Auckland. You can register here.

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