Direct Democracy Party of NZ – Taxation Policy
Direct Democracy Party of New Zealand – Taxation Policy
As you are aware, Taxation is shaping up as the main issue this election, as the Country hangs on tender hooks waiting for what will undoubtedly be a major disappointment that is all too often becoming the norm.
The Direct Democracy Party has a taxation policy that makes the attempts by the Labour government pale in comparison. What we are proposing is very simple indeed and will negate the need for the Inland Revenue Department in its entirety. We propose a 1% Transaction Tax on all outgoing financial transactions (i.e. when you draw $500.00 from your account, you pay 1% or $5.00). This Transaction Tax will replace GST, Income Tax, FBT, Petrol Tax, Provisional Tax, Corporate Tax and most all other “hidden” taxes. Of course for me to make such a statement, I would need to back this up with fact.
The simplicity of this Taxation System is incredible; all that is needed is software programmed into the ‘Exchange Settlement Account System’ (ESAS) in the Reserve Bank of New Zealand.
• Every hour of the day money is withdrawn from savings accounts, cheque accounts, insurance companies, business and investment organisations, and financial institutions of all kinds. Indeed, ALL monetary transactions are withdrawn from some type of bank or financial institution that holds money in trust.
• The Electronic Settlement Accounts System Report 2004, issued by the Reserve Bank of New Zealand, states that an average of $35.4 BILLION is transacted through the banking system EVERY WORKING DAY in ordinary business trading.
• Just one simple and moderate Transaction Tax of ONE PERCENT (1%) on all monies withdrawn will provide the New Zealand Treasury with annual revenue of approximately $92.04 BILLION. This is calculated on 260 working days at the average of $35.4 BILLION providing a total transacted amount of $9204 BILLION per annum. This how we arrive at the figure of $92.04 BILLION in revenue generation per annum at just 1%.
This is how we propose to introduce such a Transaction Tax;
• Year 1: Abolish GST, Provisional Tax (PT), Fringe Benefit Tax (FBT), Petrol Tax, all other “hidden Taxes”
Annual Revenue generation approx. $136 Billion
• Year 2: Abolish Income Tax
Annual Revenue generation approx. $117 Billion
• Year 3: Abolish ALL Corporate Taxes
Annual Revenue generation approx. $92 Billion
• Total Surplus over 3 years approx. $177 Billion
Here are some of the possible uses for the extra revenue;
A highly equipped and professional Air Force with strike capabilities and a Naval Fleet capable of securing our coastline and economic zones.
• Health and Education
A health system that means health; not illness maintenance, and an education system that is geared to enable intuitive reasoning and individual creative thought.
An increase in the super fund each year to ensure the elderly of this Country are able to enjoy a well deserve retirement with a quality of life thus far denied to them.
• Research and Development
More money to find real solutions to the problems we face combined with the ability and resources to face up to them.
• Much, much more…
We will also be able to implement steps to deal with the “Peak Oil” crisis that is upon us.
This Taxation Policy of the Direct Democracy Party was announced on Saturday 16th July 2005 in the East Coast Bays Electorate at our launch. Although the media was invited, only a TV1 Cameraman turned up, yet still not a word about it in the media. I find this rather odd considering the discussions and debate over the very issue that we have a workable solution for.
You are certainly competent enough to review my calculations and therefore arrive at a conclusion based on your findings. This Transaction tax does not penalise business or the individual, in fact it is the only way to accommodate all parties across the board.
Please review my calculations to ascertain that I am right in my stated position. I believe it is in the best interests of the Country that it is reported through ALL media avenues as soon as possible.
I thank you for your time.
Direct Democracy Party of New Zealand