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Posts Tagged ‘tax cuts’

Letter to the Editor – tax cuts bribes? Are we smarter than that?

7 September 2014 2 comments

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Frank Macskasy - letters to the editor - Frankly Speaking

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from: Frank Macskasy <fmacskasy@gmail.com>
to: Sunday Star Times <letters@star-times.co.nz>
date: Thu, Sep 4, 2014
subject: Letters to the editor

 

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The editor

Sunday Star Times

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National must be in panic-mode if they are resorting to the tactic of bribing voters with promised tax cuts.

Key and English both maintain that the government’s books will be “back in surplus” next year.

That is not the whole truth. In  fact, it is a lie.

The government (and therefore taxpayers) owe $68 billion in debt that this government has borrowed since 2008.

On top of that, the dairy pay-out to farmers is expected to fall dramatically, taking more revenue out of the economy and reducing the government’s tax-take.

And we still have billions to spend on re-building Christchurch.

In the light of this, it is grossly irresponsible for any politician to be making promises that are simply unsustainable.  Tax cuts will have to be paid for and simply putting it “on tick” and adding it to the $68 billion debt is verging on criminal negligence.

I sincerely hope that voters think carefully before accepting this bribe. We should be smarter than that.-Frank Macskasy

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[address & phone number supplied]

 


 

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Skipping voting is not rebellion its surrender

Above image acknowledgment: Francis Owen/Lurch Left Memes

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Letter to the Editor – Time for a bribe

6 September 2014 Leave a comment

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Frank Macskasy - letters to the editor - Frankly Speaking

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from: Frank Macskasy <fmacskasy@gmail.com>
to: Dominion Post <letters@dompost.co.nz>
date: Thu, Sep 4, 2014
subject: Letter to the editor

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The editor

Dominion Post

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John Key justifies his electoral bribe of tax cuts saying that his government will be “back in surplus” next year.

This is a lie. A $68 billion lie.

Because $68 billion is the debt that government (and we, the public) owe after six years of borrowings.

New Zealanders should reflect on that before voting. We are being bribed with money we don’t have; must be borrowed from offshore; and will have to be paid back.

What is supremely ironic is that John Key and Bill English then have the gall to label Labour and the Greens as “fiscally irresponsible”?

National won the 2008 with promises of tax cuts.

They were unaffordable then, they are unaffordable now.

$68 billion in debt. Think about it.

-Frank Macskasy

 

[address & phone number supplied]

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Skipping voting is not rebellion its surrender

Above image acknowledgment: Francis Owen/Lurch Left Memes

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Letter to the Editor – fiscal irresponsibility by National

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Frank Macskasy - letters to the editor - Frankly Speaking

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from:     Frank Macskasy <fmacskasy@gmail.com>
to:          “The Wellingtonian” <editor@thewellingtonian.co.nz>
date:      Wed, Aug 27, 2014
subject: Letter to the editor

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The Editor
“The Wellingtonian”
At a time when the Capital Coast DHB is so strapped for cash that it is cutting back on services for the mentally unwell (see: Fears for mentally ill forced to streets), our esteemed Prime Minister – or the “Prime Minister’s office – there is evidently a distinction – is once again attempting to bribe New Zealanders with tax cuts.
Never mind that, collectively, as a nation, we have a $69 billion dollar debt that accrues millions in interest payment, and must be paid back.

Never mind that we have 250,000-plus children living in poverty as the jobless and working poor cannot afford the high cost of living.
Never mind that people in Christchurch  face a housing shortage and massive rent hikes. Evidently, according to earthquake-minister Gerry Brownlee, the free market will sort that out.

It beggars belief that we have a major political party so irresponsible with finances that it is willing to spray money around to win votes, rather than address our multi-billion dollar debt and critical social problems confronting our nation.
They do not deserve to be re-elected government.

-Frank Macskasy

 

[address and phone number supplied]

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References

Fairfax media: Fears for mentally ill forced to streets

Fairfax media: Christchurch rent crisis ‘best left to market’

 


 

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Skipping voting is not rebellion its surrender

Above image acknowledgment: Francis Owen/Lurch Left Memes

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Letter to the editor – fiscal prudence or another election bribe?

25 August 2014 1 comment

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Frank Macskasy - letters to the editor - Frankly Speaking

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from:     Frank Macskasy <fmacskasy@gmail.com>
to:          Dominion Post <letters@dompost.co.nz>
date:     Tue, Aug 26, 2014
subject: Letter to the editor

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The Editor

DOMINION POST

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So let me get this straight…

We have in this country, currently,

* a colossal debt estimated to rise to  $67.9 billion by  2018,

* a quarter of a million children living in poverty,

* Christchurch residents facing a critical housing shortage,

* and cuts to health and education

- and our esteemed Prime Minister is talking about tax cuts?!

Perhaps he can also tell us where the cash for tax cuts will come from? More borrowings from off-shore, as National did for the 2009 and 2010 tax cuts?

And perhaps he can tell us which generation will pay off the massive $67-plus billion debt if he’s going to lavish us with tax cuts?

National continually accuses Labour, the Greens, and Mana-Internet for being profligate spenders.

But nothing compares to this government which took us from zero debt in 2008; implemented two clearly unaffordable tax cuts funded by borrowing from off-shore banks; and ballooned debt out to nearly $70 billion dollars.

This is not prudent fiscal management. It is a very expensive election bribe.

More fool us if we take this bribe. A bribe with other people’s money. A bribe to be paid back by our children.

-Frank Macskasy

[address & phone number supplied]

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from:     Frank Macskasy <fmacskasy@gmail.com>
to:          NZ Herald <letters@herald.co.nz>
date:      Tue, Aug 26, 2014
subject: Letter to the editor

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The editor
NZ Herald
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John Key’s desperation is showing. How else to explain National’s dangling of a tax-cut carrot in front of voters, barely a few weeks out from the election.

As if a $67 billion debt isn’t enough, he wants to cut taxes and presumably borrow more money from off-shore to fund those cuts.

Where else will the money come from? Pixies cultivating money trees?

Meanwhile we have critical problems confronting our nation;

* over 250,000 children living in poverty,

* Cantabrians faced with a snails-pace rebuild; mounting housing shortage; and skyrocketing rents,

* cuts to social services such as health and education.

The last round of tax cuts in 2009 and 2010 were paid by increasing user-charges such as medical prescriptions and raising GST from 12.5% to 15% – increases which hit low-income earners the hardest.

National paid for the ’09 and ’10 tax cuts with massive borrowings.

How much will be have to borrow to fund these tax cuts?

Who will pay it back?

Our children?

Shame on us if we fall for this scam.

We are better than this.

-Frank Macskasy

  [address & phone number supplied]

 

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References

Fairfax media:  Surplus on track, Treasury figures show

Fairfax media: National’s tax cut mixed message


 

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Skipping voting is not rebellion its surrender

Above image acknowledgment: Francis Owen/Lurch Left Memes

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Letter to the Editor: Sure, why not let the poor starve, Ms Mitchell?

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old-paper-with-quill-pen-vector_34-14879

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A letter-writer to the Dominion Post, Silvio Famularo, recently suggested that increasing benefits for the poor would be a positive move. Rightwing blogger; failed ex-ACT candidate; and self-proclaimed welfare “expert”, Lindsay Mitchell, would have none of it. She responded on 27 May with her own letter to the editor;

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letter to editor - dominion post - Lindsay Mitchell

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This was my response,

 

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FROM: "f.macskasy" 
SUBJECT: Letters to the editor
DATE: Tue, 27 May 2014 23:59:18 +1200
TO: "Dominion Post" <letters@dompost.co.nz> 

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The Editor
Dominion Post


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In replying to Silvio Famularo, who advocated for raising
benefits for the poor because they spend more, rightwing
blogger and ex-ACT candidate, Lindsay Mitchell derided the
suggestion by asserting that "to increase benefit
expenditure the government would have to increase taxation".
(27 May)

Since 1986, successive governments have cut taxes seven
times. Eight, if one includes Working for Families
tax-rebates.

Which would explain why we have high user-pays such as
tertiary education, prescription charges, "voluntary school
donations", etc, and GST rising from 10% in 1986 to the
current 15%.

Mitchell claims - without any evidence - "that means taking
more money off people who will in turn have less to spend on
the same goods and services".

If  National can provide million dollar subsidies to Warner
Bros, Rio Tinto, Charter Schools, et al, then perhaps it is
not so much a matter of "taking more money off people" - but
re-directing resources to those who need it most.

Raising progressive taxation on high income earners would
not take bread of their table - but would certainly put food
on the tables who are least well off.

Or have we totally abandoned any notion of being an
egalitarian society where we only look out for ourselves,
and devil take the hindmost?


-Frank Macskasy
[address & phone number supplied]

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References

Dominion Post: Letter – Benefit boost has direct effect

 


 

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Skipping voting is not rebellion its surrender

Above image acknowledgment: Francis Owen/Lurch Left Memes

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Letter to the Editor: Kiwi style or American style?

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old-paper-with-quill-pen-vector_34-14879

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FROM:       "f.macskasy" 
SUBJECT:     Letters to the editor
DATE:        Wed, 14 May 2014 23:59:33 +1200
TO:         "Dominion Post" <letters@dompost.co.nz> 

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The Editor
Dominion Post

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I am dumbfound. Absolutely gobsmacked.

With New Zealand's sovereign debt now around $60 billion (as
at November 2013) and having increased by $27 million a day
since National took office - John Key is kite-flying with
suggestions of further tax cuts?!

Is this how National exercises fiscal responsibility -
bribing voters with yet more unaffordable tax cuts?

Previous tax cuts in 2009 and 2010 were paid for with assets
sales; taxing children on their paper rounds; increasing
prescription charges; as well as unsuccessful  attempts to
tax carparks and cellphones. Currently, National is planning
to sell off 5,000 State houses that were once homes to
low-income families.

Instead of tax cuts, New Zealanders might care to tell the
Prime Minister that we should be funding education so that
parents don't have to fork out  $357 million a year in
so-called "voluntary donations" and spend long hours 
fundraising to pay for  supposedly "free" schooling.

It is patently simple. We can have free education and public
healthcare. Or we can have tax-cuts. But we cannot have
both. 

This is the moment we decide whether we want public services
for all New Zealanders, regardless of their financial
circumstances - or an American-style user-pays.

I hope we choose wisely.


-Frank Macskasy
[address & phone number supplied]

 

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References

NZ Herald:  Parents fundraise $357m for ‘free’ schooling

Fairfax media: Public debt climbs by $27m a day

Radio NZ: PM John Key dangles tax cut carrot


 

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Skipping voting is not rebellion its surrender

Above image acknowledgment: Francis Owen/Lurch Left Memes

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= fs =

The Mendacities of Mr Key #3: tax cuts

2 March 2014 2 comments

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john key lying

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3. Tax cuts

Background

19 May 2008

In the bitterly contested lead-up to the 2008 general election, National promised three tax cuts, to be spread over three years.

These were prompted by the nine consecutive Budget surpluses that Labour’s Finance Minister, Michael Cullen, had posted between 2000 and 2008. The public perceived that the government had too much of our money and demanded tax cuts.

Cullen resisted, as his main priority was continuing to pay down billions in debt that Labour had inherited in late 1990s.

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Key  and  National Party strategists heard the insistent  calls for tax cuts, and duly obliged – even though by November 2008, the global financial crisis had plunged the world into a recession, with only Australia and China escaping the worst effects.

In May 2008, Key promised voters tax cuts ‘‘North of $50‘‘.

April 2009

On 1 April 2009, National delivered the first of two rounds of tax cuts (a third round had been scrapped, as by then the recession had blown a hole in the government’s revenue).

This is what the 2009 tax cuts delivered.

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tax-cuts-april-2009

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Anyone earning under $40,000 received nothing. Not even close to “north of $50″.

October 2010

The following year, the second round of tax cuts was implemented,

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Tax rates October 2010

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Susie Nordqvist wrote in the Herald on 20 May 2010,

* Average income household – $24.71c per week better off

* Average wage worker – $15.91c per week better off

* Couple receiving New Zealand superannuation – $10.77c per week better off

* Professional property investor with 25 properties – $288.18c per week worse off

* Couple saving for their first home – $40.38c per week better off

* Domestic purposes beneficiary – $2.45c per week better off

* Minimum wage worker – $6.36c per week better off

* Student – $2.66c per week better off

* Business owner structuring income to claim for Working for Families – $153.03c per week worse off.

As the reader can easily determine, very few in the above group were receiving “north of $50″. When the rise in GST was taken into account, the actual real cut in  taxes for average workers’ and families was reduced even further.

The only tax bracket that received a tax cut “north of $50″ were those earning around $80,000 or more. Such as government ministers. And John Key.

When you factor in the rise in GST from 12.5%  to 15% – even fewer got the much promised “north of $50″, except the wealthiest.

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Key defends tax cuts for wealthy

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Conclusions:

  1. Key had no choice but to cancel the third round of tax cuts (scheduled for 2011), and to reduce the amount on offer. The GFC and recession were biting into our economy so badly, that National was borrowing $450 million a week by the end of 2009. Adding the 2010 tax cuts into the mix eventually left this country with a $60 billion fiscal hole.
  2. Key knew that the tax cuts were unaffordable during the 2008 election campaign. The world was deeply mired in the global financial crisis and recessionary effects were beginning to hit economies around the world. To pursue the promised tax cuts was the height of irresponsibility.
  3. Key bought the election with unaffordable promises.
  4. Our debt will have to be re-paid. (Foreign creditors insist.)

Beware of politicians bearing promises and gifts. We will be the ones paying for it.

Charge: broken promise/deflection/half-truth/hypocrisy/outright lie/mis-information?

Verdict:  Outright Lie, Broken Promise

 

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References

NZ Herald: Cullen – Tax cuts but strict conditions

Trading Economics:  New Zealand Government Debt To GDP

Dominion Post: Nats set for $50 tax cut trump

Otago Daily Times: Key says donate tax cuts to charity

NZ Herald: Budget 2010: What the tax cuts mean for you

NZ herald: Key defends tax cuts for wealthy

Parliament:  Tax System Changes—Impact on Operating Balance

Otago Daily Times: Government now borrowing $450 million a week – claim

Radio NZ:  English confirms national debt set to rise

Previous related blogposts

Labour: the Economic Record 2000 – 2008

The Mendacities of Mr Key #2: Secret Sources

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Vote these traitors out

Above image acknowledgment: Francis Owen

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