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Gareth Morgan's tax system - what is your view?

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Wed, 02 Dec 2009 8:57a.m.

Gareth Morgan

Gareth Morgan

Economist Gareth Morgan proposed an old chestnut at yesterday's tax working group. His plans include scrapping all benefits and replacing them with a $10,000 gift from the govt for all and a flat 25% tax on every dollar earned. Meaning our first $40,000 earned would be tax free. Do you think his plan is workable?
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Comments

09 Dec 2009 01:42a.m.

Chris Lilly wrote:

Whatever works. I believe we do spend too much on welfare, but only in the sense of people becoming dependent on it, and too used to it. Certainly an investment in a person bettering themselves would end up better in the long run, but in the end there will always be some who need welfare help of some sort. The key is in getting able bodied people into decent work. There's no shortage of work to be done, it just seems that no one is prepared to pay anyone any decent amount to do it. Prisoners can and should only do so much, but they should not be doing jobs law abiding beneficiaries could be doing for a decent wage. Any gift like that could be wasted by some, then they may expect more. The Government should be responsible for making sure people get work, since they are the ones taking our money for the job they claim they can do, milking that gravy train like it will never derail, and what do we get from them ? Some foreign made economic crises because a pack of honkies got greedy ( don't worry, I'm white, so I should be allowed to say that. ) It seems we are stuck influenced by conditions in other countries. Why can't we stand on our own feet, and get on with making a decent lives for ourselves, and forget all the doom and gloom. One wonders if these crashes are not engineered somehow. Mr. Morgan is a clever man, so some of what he has said otherwise might also be good.

07 Dec 2009 09:29p.m.

Cristal wrote:

I have to say... if that man was in government I'd vote for him! Everytime he is on TV he speaks nothing but sense, why can't our politicians do the same? Go for it Gareth... the next PM maybe???

06 Dec 2009 11:39a.m.

eddie wrote:

Looking at, NOT changing benefits, plays into the opposition hands, unfortunately all benificieries would read is the headlines 'Govt set to remove benefits' and all of a sudden Labour/Greens get a huge boost, benificieries see their 'pay' as a right and nothing else, it's a lifestyle choice for hundreds of thousands of NZ'rs and nothing can be done, why would Labour change them if it's the same people who were scaremongered into voting for them on this topic...any changes to benefits (and it NEEDS changing) needs cross party support and labour would NEVER go for it.

03 Dec 2009 07:19p.m.

M wrote:

If only John Campbell just shut up and let Gareth talk, we would have been able to find out more about this idea and explore if a bit deeper.

03 Dec 2009 04:07p.m.

Warren wrote:

Unfortunately there is a dribble down affect to scrapping benefits...people without any money, don't pay rent, or buy food in despiration they turn to two things, religon, or to crime to survive, a look at the middle east shows what happens if they turn to religion. Crime means more police needed more courts more prisons more prision staff...eg The USA

03 Dec 2009 06:28a.m.

Dan wrote:

NZ needs this!You would probably get more people to work because the govt wouldn't be taking as much,so there would be less need for the dole anyway.Privatise the prison system so NZers dont have the burden and it would run far more efficiently because business' don't like running at a loss.Up GST obviously.The way the system is now,I take home less than 50% of my wage,and I'm not the only one.They say they would lose money,but if it wasn't there they would just come up with other ideas like the households of NZ do to get by.

02 Dec 2009 06:53p.m.

Peter wrote:

With utter disbelief, I just watched Hone Harawira on TV say that his comments in his email were NOT racist! Doh! What planet is this guy on? I am thinking that if this is the quality of MP we have in Wellington because of MMP, what hope is there for New Zealand? He is a complete whacko.

02 Dec 2009 03:01p.m.

Rachael wrote:

Brilliant idea. It will provide incentives to employers to use people rather than machinery which will provide more jobs for those people currently on benefits who actually want to work. Those that choose not to can continue to live on their handouts without those of us that make an effort feeling like we're supporting them as we will get the same! I do agree with Eric though that there should be an extra amount for those over 65 that have worked all their lives and supported others during that time.

02 Dec 2009 02:28p.m.

Eric wrote:

Remove ALL benefits? Even NatSuper? How will the olds get by? As someone earning under $40,000 it sounds great. Just worried about my mum. I don't care about my niece who is on the dole, hooked on dope and playing PS all day. 10K would last here a few months. Would like more info on this plan.

02 Dec 2009 12:08p.m.

Brian wrote:

This plan is at least a start in the right direction. A better alternative though is the removal of all income taxes as these are iniquitous and only stifle productivity. A higher consumption tax (GST) (but with exemptions on unprocessed foods) this would encourage savings and reduce spendings on the so called luxury items, which are mostly imported, thus saving foreign exchange too.

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