Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


The Letter: 19 May 2014

The Letter
19 May 2014

20 cent Company Tax Rate

Last week Jamie Whyte, using Treasury’s figures, issued a fully-costed Alternative Budget showing how by removing $4 billion of corporate and middle class welfare the top personal and company rate could be reduced to 24 cents. Jamie Whyte has used last week’s budget figures to update his alternative budget. It shows the National government could have reduced company tax to 20 cents.

It would double growth

Using widely accepted economic models a top personal tax rate of 24 cents and a company tax rate of 20 cents would double New Zealand’s standard of living in just 15 years. Not even the government claims that its new election year spending will lift growth. As Jamie Whyte said at a campaign meeting on Sunday, reducing the company tax rate is good economics but not good politics because companies do not vote. National’s budget just transfers money from one group to another. Electorally it works because the groups that receive money, families, are popular and numerous and those who pay, higher income individuals, and business are not popular.

Entitlement politics

The idea that people are entitled to other people’s money is now so widely believed, that when ACT questions the morality of entitlement neither voters nor politicians nor commentators can imagine any other way.


Jamie Whyte says he meets people who ask, “What are you going to do for me?”. Students want him to take money from others whose circumstances they cannot know about to pay for their degree. People who “believe that living in a democracy was something akin to being born into a mafia family. You get a say in who is going to be extorted and you can get your hands on a share of the proceeds”.

Our politicians are communists

To quote Jamie, “On The Nation it became clear that all my opponents, with the possible exception of Peter Dunne, did not believe in private property. On the topic of Auckland house prices, Winston Peters claimed that “we are selling our houses to foreigners”. When I pointed out that houses are not collectively owned and that individual New Zealanders were selling their houses to whomever they chose, he insisted that I was wrong about this. And, as you can imagine, Russell Norman and John Minto agreed that the government should decide who you may sell your house to – or, in other words, they agreed that it is not really your house.”

The media thinks entitlement is just common sense

The Letter does not care if Linda Clark gives media training to David Cunliffe. (It does not seem to be working). What worries us is Jamie Whyte’s observation about Linda Clark’s The Nation commentary: “Without any argument or evidence, she dismissed my detailed plans for cutting corporate and middle-class welfare and reducing tax rates as “mad”. It was just obvious to her that low government spending and low taxes is a mad idea.”

State Radio

Guyon Espiner interviewed Jamie Whyte on Radio New Zealand and claimed that ACT by lowering the top rate of tax from 33% to 24% was making a “gift” to people earning over $70,000 a year. He went further and suggested Jamie Whyte was trying to enrich himself. As Jamie says, “Of course, the government could tax all the money you earn. But it does not follow that your post-tax income is a gift from the government. You might as well argue that your TV is a gift from your local burglar because he has chosen not to steal it.” Jamie’s speech is onwww.act.org.nz

The politics of hate

In an earlier issue, The Letter predicted that Labour would come to regret joining in with Winston Peters in promoting policies that are thinly veiled attacks on the Chinese. In a multi-racial country racism is a genie that is very hard to rebottle. When our friend Michael Hirschfeld was Labour Party President, no Young Labour supporter would have thought it smart to blog as he did last week that Jamie Whyte is Jewish and that Jews care about nothing but money. But then Michael would not have approved of today’s xenophobia

The only victim of the Judith Collins Affair is…?

The only victim of the Judith Collin’s affair is Shane Taurima, the TV presenter who David Cunliffe has ruled out of standing for Labour. The TVNZ Inquiry found Mr Taurima had used his position at TVNZ to promote his Labour candidacy. To do this he used his TVNZ email account and held meetings after hours at TVNZ. The Inquiry could not put a monetary value on the use Mr Taurima made of the state broadcaster’s resources. (There is an airfare that is disputed and Mr. Taurima has repaid). In contrast, the Auditor General found that the Parliamentary Labour Party used hundreds of thousands of taxpayers’ dollars to illegally fund their election campaigns. No Labour MP was “ruled out” on those occasions. Shane is a victim of Labour’s new standard. Now it is just perception of wrong doing and you are guilty. If that is the standard there are going to be a lot more Shane Taurimas being ruled out from standing.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Key In NY: Prime Minister Addresses United Nations

    Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


    Gordon Campbell: On The Lack Of Accountability Over Philip Smith

    In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


    More On Corrections

    Gordon Campbell: On Putin’s Diplomatic Coup Over Syria

    There’s a simple historical precedent for what is occurring in Syria. During WWII, the Allies joined forces with a known butcher and tyrant – Joseph Stalin of the Soviet Union – in order to defeat a greater evil, Nazi Germany… More>>


    Key 'Didn't Know': Brownlee Seeks Pandas In China

    While Defence Minister Gerry Brownlee is in China pushing a taxpayer funded deal to bring two pandas to New Zealand, the country’s military look set to be hit with a pay freeze, Opposition Leader Andrew Little says. More>>


    Scoop Business: GCSB Willing To Extend Cyber-Attack Programme To Local ISPs

    The Government Communications Security Bureau’s ‘Cortex’ cyber-security programme has been successful in helping identify and mitigate a series of cyber attacks since its introduction and an extension to cover local internet service providers is still on the cards... More>>


    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news