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

 


The Letter - 4 August 2014

The Letter - 4 August 2014

12.5% company tax rate

Cutting the company tax rate to 12.5% will boast GDP growth by 1%. As New Zealand’s best estimated long term growth rate is 3% this is a huge increase. It is close to an economic silver bullet. It is the best new idea any party has come up with for years. Jamie Whyte and ACT’s policy team have reviewed the international research. There is now case after case showing firstly how damaging high company tax rates are to growth. A high company tax rate discourages investment. Lower investment results in less employment. New Zealand’s relatively high company tax rate is a large part of the reason New Zealand’s real wages are low. When the company tax rate is reduced investment increases, (projects that were uneconomic become viable), increased growth leads to increased employment. The higher real wages come largely because the increased investment leads to a productivity improvement making higher real wages viable.

It is a global economy

New Zealand is competing for capital against the world. When we have a high tax on investment the capital just goes elsewhere. It is not just Ireland that has shown the economic benefit of a low company tax rate. Ireland’s present woes came from an unrestrained banking sector, property bubble and poor public financial management, yet the country’s low company tax rate is helping its rapid recovery. We can observe how high company tax rates damage growth in federal systems, such as USA and Canada. Conversely, examples from those countries show how cutting the Company Tax rate increases growth, jobs and real wages. French economic growth is stunted by a complex, high tax regime.

ACT has published the research

Jamie Whyte has released the international research that supports cutting the Company Tax Rate. It is on ACT’s website and is worth a read www.act.org.nz . ACT has also put out how to fund it. Company Tax does not raise very much. Eliminate all corporate welfare, which is just crony capitalism, politicians picking ‘winners’, and get rid of the ETS, which even the Greens admit is having no effect on global warming – just gesture politics.

TV debate tonight Native Affairs Maori TV 8.30pm

Jamie Whyte has been issuing a series of background papers most of which have been ignored by the media. A proposal that we should have equality before the law, posted three days after the speech was given to no media coverage, has produced a media storm. Jamie Whyte has not retreated and has shown he is made of strong stuff. Jamie tells The Letter that many of the journalists who have rung him clearly have not read the speech. Not having read the speech is the only charitable explanation for the Race Relations Conciliator’s intemperate personal attack. Nowhere in the legislation Dame Susan Devoy is paid $220,000 a year to administer does it say it is part of her job to publicly attack a candidate for office who having said he is against racial discrimination. Dame Susan is debating Jamie Whyte tonight on Native Affairs Maori TV at 8.30pm and we look forward to hear why equality before the law is wrong.

Media bias

We have had a look at what the journalists attacking Jamie are saying. Very few address what he has said. The Australian Fairfax group has resolved the issue by pretending it has not happened. (Print media blackouts used to be effective, but now, in the age of Facebook and talkback radio, newspapers are just made to look irrelevant or biased. Not one commentator has defended the example of discrimination Jamie gave. AT our universities today there are students from state house backgrounds who have been refused a place on courses in favour of students from privileged private schools because the state house student’s parents are the wrong race. We are also waiting for a media outlet to publish what Jamie Whyte actually said. We said to one journalist who was attacking Jamie as a racist “Have you read his speech?” Answer “No. I do not read what racists write”. Have a read yourself and you be the judge www.act.org.nz

Epsom is the key

The reason John Key said last week “I am encouraging Epsom voters to support he ACT candidate” is because in the latest Roy Morgan poll ACT winning Epsom makes John Key PM. It is the same reason Internet Party leader Laila Harre and John Minto have urged their supporters to vote National to defeat David Seymour. After wondering why John Key has not done a deal with the Conservatives, Colin Craig then tries to help Labour in Epsom. John Key did look hard at an accommodation with the Conservatives but decided the fruit loops are unelectable. If Colin Craig had door knocked on 10,000 doors in East Coast Bays, like David Seymour has done in Epsom, the answer might have been different. If Colin had not told us all that it is a “no brainer” Christine Rankin would stand in Upper Harbour against Hon Paula Bennett, then we might not think it is brainless for her to stand in Epsom. By Writ Day she will be the candidate for Mangere.

A Labour MP in favour of productivity

Last week Parliament heard a record number of valedictories. The best was from someone many MPs had never heard give a speech, the long serving assistant Speaker Ross Robertson, MP for Manukau East. Being working class and socially conservative Ross would never be selected by today’s Labour party. It is years since the whips have let him ask an oral question. While overlooked in this country for promotion MPs around the world elected Ross the chairman of their international association. Ross’s speech covered issues no Labour MP talks about: the importance of productivity, ethics and why the Official Information ACT should be extended to Parliament and MPs’ spending. Readers interested in a fine example of Parliamentary speaking should view the YouTube clip. We will never see a speech like that from a Labour MP again. Go tohttp://www.parliament.nz/en-nz/pb/debates/debates/drafts/50HansY_20140730/draft-transcript-wednesday-30-july-2014


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Urgent Bill Planned:
MP Pay Rises To Match Public Service

Prime Minister John Key today announced an overhaul of the Remuneration Authority Act, tying MP salaries to those of the wider public sector, which will be passed under urgency.

Mr Key says the decision was made after the Remuneration Authority’s latest determination which saw the total remuneration received by MPs increased by about 3.5 per cent...

The new legislation will be backdated to 1 July 2014, meaning the pay increase outlined in the latest determination will not be awarded. More>>

 

PARLIAMENT TODAY:

PM's Press Conference: MP Pay Rises, Solid Energy, Iraq

Prime Minister John Key answered questions in his Post-Cabinet press conference about the Iraq deployment, Solid Energy and National’s decision to overhaul the Remuneration Authority Act. More>>

ALSO:

Worksafe: MSD Charged Over Work And Income Ashburton Shooting

WorkSafe NZ has laid one charge against the Ministry of Social Development (MSD) in relation to the shooting at the MSD Ashburton office on 1 September 2014 in which two Work and Income staff were killed and another was injured. More>>

ALSO:

Iraq: Ex-Hostage Says Government Not Putting NZers, Iraqis First

Harmeet Singh Sooden is travelling to Iraq in the coming weeks to work with Christian Peacemaker Teams (CPT) on a short-term assignment. More>>

ALSO:

Joint Statement: Australia-New Zealand Leaders’ Meeting

Prime Minister Key warmly welcomed Prime Minister Abbott and Mrs Abbott to New Zealand. The visit has enabled wide-ranging and substantive discussion that has underlined the strength, value, diversity and warmth of our trans-Tasman relationship. More>>

ALSO:

Press Conference: Peters To Stand In Northland By-Election

New Zealand First Leader Winston Peters has announced his intention to stand in the Northland by-election, citing his own links to the electorate and ongoing neglect of the region by central government. More>>

ALSO:

Gordon Campbell: On The Wage Hike For MPs (and Paul Robeson)

Hard to tell what is more infuriating. Is it the 5.3% increase on the already bloated salaries of MPs, or their pantomime of outrage at being gifted with such a wonderful back-dated bonanza? More>>

ALSO:

No Designers Or Visual Artists: Flag Panel Members Announced

The Government has appointed 12 New Zealanders as members of the Flag Consideration Panel which will engage with the public about a possible new New Zealand flag, Deputy Prime Minister Bill English says. More>>

ALSO:

Labour MP Stands Down From Portfolio: Comment From Carmel Sepuloni

The first I knew of my mother’s charges was when I was called by a reporter yesterday. I spoke to Andrew and we agreed there is a conflict of interest at the present time which means I will temporarily stand aside from the Social Development portfolio. It’s the right thing to do… . More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news