This is a Superb Budget!
This is a Superb Budget!
Today, Libertarianz proclaimed the release of a superb 2003 budget - not Cullen's high tax, low-growth monstrosity, but the 2003 Libertarianz Alternative Budget.
This Alternative Budget reduces all taxation to zero within five years. Not only that, but over that period: - Taxes would be reduced to a flat rate of 15%, and GST would be completely dumped. - All government debt, currently a massive 27% of GDP, would be fully paid off by 2008. - The country's defence assets would be quadrupled. - The government's liabilities to pensioners would be entirely pre-funded and all ongoing financial superannuation obligations wiped clean.
How could Libertarianz achieve all this in just five years? Easily - through a 'little' thing called freedom.
Libertarianz says that their budget demonstrates the effect on the economy when people are free. To protect individual freedom, Libertarianz would reduce the State's involvement in all spheres of life except those that protect individuals and their property from the use of force. People would then be free to direct their own lives, and to take responsibility for their own decisions.
The only legitimate functions of government, says Libertarianz, are police, law and order, justice, and defence - only these, says Libertarianz, are protective, and not destructive, of rights. Consistent with these principles, the Libertarianz 2003 budget is based on the following approaches: - Sale or distribution of all State assets within five years, except those related to police, law and order, justice, and defence. This includes all assets related to health and education. - Ending immediately all expenditures not related to police, law and order, justice, and defence. This includes health, education, and, above all, social welfare. - Recognising liabilities created by past governments, and either paying these off or fully pre-funding them within five years, superannuation and healthcare to those aged 55+ for their remaining lives, the DPB to those with children currently aged 0-3 until those children turn 4, and disability and invalid benefits to current legitimate recipients for 6 years.
Excluded from the superannuation provisions are bureaucrats and MPs. The Government Superannuation Fund will only recognise existing pensioners, so bureaucrats and MPs will have to go hungry.
This budget also introduces the concept of voluntary funding of government. The flat tax of 15% is reduced to zero after year 5, when all the government's liabilities have been paid and the defence force adequately equipped.
Libertarianz have worked out that the amount required to fund the government's legitimate activities would only amount to an average of $20 per week, per person aged 15+. That works out to just 2% of GDP, compared to the Government's current revenues of 33% of GDP. This, they say, is all that is required to fund the government!
Libertarianz propose to phase this voluntary funding in by introducing and advertising an annual revenue target over the five year transitional period.
[The Libertarianz budget is available now at the new-look Libertarianz website, www.libertarianz.org.nz
The model was calculated by a long-time Libertarianz supporter and spokesman, Tim Sturm. Sturm is a graduate of the London School of Economics, and was selected as one of New Zealand's "emerging leaders" for the Knowledge Wave Conference this year.[