Wednesday 18 May 2005

When we say slash taxes ...

While you're listening to the details of tomorrow's Cullen Budget and watching Judy, Hilary and Mike get all excited about the who will be 'better off' under Michael's latest budget, reflect for a moment that government has no money of its own to spend. It does not produce a single cent; every dollar it promises to spend it first has to take from us. Whatever largesse they distribute to you, they first had to take from you.

How much 'taking' is too much? Excluding government employees, lawyers and consultants from the figures of those gainfully employed, is $60billion too much for 800,000 or so taxpayers to pay? And giving people their own money back in order to make them beneficiaries of the state ... that' s just wrong isn't it?

Does it have to be this way?

No. It doesn't. Libertarianz has produced an alternative budget here showing that -- with the will to do so -- all compulsorily levied tax could be got rid of completely within four to five years, and thereafter a payment similar to that you make on insurance could keep the government and its remaining beneficiaries afloat.

In the meantime, and over those transitional four to five years, GST would be abolished, a flat rate of 15% income tax assured, and a tax-free threshold of $10,000 applied. Great for the poor, who would be able to keep their own money and become rich.

Details here.

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