fix the economy by cutting taxes for workers and businesses
Derek Hoeta
Public
Seen by 149
to find out why the new zealand Economy is not working for us and why we have a 84 billion dollar debt we need go back to the basics of an Economy.
the basics of an Economy is quite simple really workers an businesses pay taxes to the government the government manage the tax money pay for essential services schools roading hospitals etc and hopefully come up with plans to gather more money to go back into the economy.
for an Economy to work properly the money must go in a circle but that has not been happening what has been happening is workers an businesses have
been paying taxes an the governments of the day have been making bad financial decisions that have put us in debt.
if your looking for someone to blame it would have to be national and labour because they are the only parties that have been in power since elections first started in this country. but am not here to play the blame game am here to come up with a solution to fix the problem.
basically our Economic money making machine is broken an we need to fix it without having to borrow money to do that.
to fix it i propose a solution that is up for discussion by everyone i believe the only way to fix it would be to cut taxes in half for taxpayers an businesses initially the government will lose money but will gain it back.
so i pay $.260 a week in tax paye if we were to cut my tax in half i would end up with an extra $130.00 a week to spend an being a family man i would probably spend it on my kids buy a new washing machine clothes birthday presents or just treat the family.
an where would i spend the extra money at new zealand businesses ie; wharehouse etc
so who would benefit everyone me my family businesses an the government so just off the top of my head if we say one million workers averaged an extra 100 a week that would immediately inject one hundred million dollars back into the economy over night haven't got an exact figure on how many tax paying workers in nz at this time but that gives you a roundabout idea.
but you cant just give workers a tax break you must also give businesses a tax break to but they must apply for their tax cut if you cut taxes for businesses then that would put millions more dollars back in the economy over night too
businesses must apply for their tax cuts though an with some of the money they make from the tax cut they must either employ another worker if they can or if they don't need another worker then they must give there employees a wage rise which will put even more money back into the economy if they don't want to do any of those thing then they stay at there same tax rate.
i remember i think it was the national party come up with a theory to fix the economy by a trickle down theory give the money to the rich and it would trickle down to the poor as we all know that didn't work what will work is a pay down theory where the government pays a certain amount of money down to the people and businesses
and they will spend it and it will start going round in a circle like a economy should work then we would have fixed our money making machine the plan should be too keep feeding money back into the economy for it to grow and to continually feed it to keep it growing any way that's how i believe it would work but once its working properly then there's still plenty of work to do to maintain it and make sure it doesn't break down again.
the benefits of my plan would be more money in the economy more jobs less stress less domestic violence a lot of domestic violence stems from financial problems also with more money in the economy less children in poverty and the people have got more spending power. so that's my plan and id like to now open it up to discussion see what the group thinks about that and ask me questions on my plan
Derek Hoeta Mon 25 Aug 2014 7:01PM
sori Draco if taxes aren't the problem can you explain what is the problem
Maximum N-a Mon 25 Aug 2014 7:18PM
I agree. Taxes are not the problem. Taxes are a symptom. The problem is the monetary system as it is.
You can learn all about it at positivemoney.co.nz however in a nutshell: 98% of all money is issued out of thin air by private banks as debt. The government borrows money off these banks at interest and it is the taxpayer that has to pay it all back. The banks makes a killing simply by making a computer entry.
The national debt is 100% unnecessary. Therefore income and GST taxes are completely unnecessary as a significant portion of it goes to paying off interest on debt. Remember that is pure profit for the bankers.
Further, it is currently easy for people to get around paying taxes. Thats why we have accountants. They are really just tax avoidance agents. A simple 1% electronic transaction tax would easily cover the governments needs if it weren't paying so much interest to banks, it is fair and unavoidable.
And when you are pondering all this just ask yourself -why would a supposedly sovereign government borrow money off a private bank at interest when it has the authority to create all the money it needs debt free??
Sam McPherson Mon 25 Aug 2014 7:36PM
my short thought up on the spot with why our economy and country isnt "winning"
- our economy is its required to grow, but it doesnt need grow at the rate resources become available, or at the rate population grows. it needs to grows at a rate money gets created... which it cant because the system is rigged
- social stratification(the top 20% have 51.8% of nzs resources)
-corruption; when countries sell off assets that were making us money to make a quick buck, its corruption, privatising electricity and water, and other industries we rely on to live healthy lives, corruption
-technological unemployment. in forestry it used to take 16 guys what it now takes 1 warrittah and one driver/operator. 15 good paying jobs that will never exist again.
technological unemployment wont be fixed unless we begin thinking outside the box to resolve this. the box is our current economic models.
Ross Scholes Mon 25 Aug 2014 7:55PM
Twiddling the 'economy' knobs won't bring relief.That bus took us the wrong way. Changing drivers is not going to help either. We need to change buses.
Nick Taylor Mon 25 Aug 2014 10:20PM
Back to "tax-cuts" again.
No fault of anybodies I suppose - being as we are, on the receiving end of decades of corporate-funded propaganda, mis-identifying tax as "the problem". It isn't.
Here's what happened:
Back in the 1930s, all manner of shit hit the fan, right at the point when organised labour was very strong. There was a depression, that "power" attempted to fix by lowering tax rates. This made things worse.
http://www.hyperhistory.com/online_n2/connections_n2/great_depression.html
The result? Labour started making threats, which gave rise (all over the world) to The New Deal... from which came the biggest boost of prosperity that humanity has ever known. High-band tax went from about 25% to about 65% - then up to about 90%.
It worked - and the main reason our current depression isn't as bad as the one in the 30s, is that we're still living off the surplus built up by The New Deal.
...
So. What happened?
The housing market happened. Once a husband could support an entire family on his wages - very few people rented. A working wife's income was an optional nice-to-have. Today husband and wife both need to be working as a pre-req to having a house big enough to raise a family, and even that isn't enough.
The housing market ate women's lib - and now we're being forced to borrow... going into debt for entire life-times as we compete in a housing-arms race.
This isn't "investment". Investment is when you put money into something, and value is created - something is built. The "housing market" is pure speculation, mutated onto our life-support system. We're forced to lock trillions of dollars up into this artificial scarcity.
That is where the money has gone. Tax is not the problem - cutting tax will utterly fuck our infrastructure (see America), and any surplus (if there is any, after basic services have been privatised) will sooner or later wind up in the housing market.
We need a LVT, and a UBI... and we probably need co-op land-management/housing.
While a LVT can possibly obviate the need for tax on creating-value (see Stiglitz etc), simply cutting tax is a catastrophic idea, that has been tried, and which has failed, before.
Colin England Mon 25 Aug 2014 11:35PM
if taxes aren’t the problem can you explain what is the problem
Greed and peoples desire not to pay for the things they use.
Marc Whinery Tue 26 Aug 2014 12:17AM
If taxes are cut to 0%, how will the government pay for anything? Eliminate police, fire, and schools at the same time?
Derek Hoeta Tue 26 Aug 2014 5:58AM
Maximum N-a i never said taxes were the problem what is the problem is governments making bad decisions an getting us into debt
an not understanding how an economy should work at a basic level maybe i didn't explain that clearly enough but it was 3 in the morning when i wrote it but its good to see a few people commenting on it alot to take in will read your comments an try to explain how i come to some of those decisions thanks
John G Tue 26 Aug 2014 6:46AM
So called government debt is no problem whatsoever. It is just a number on a spreadsheet that represents the accumulated deficit spending of the government.
It is an asset of the non-government sector.
Colin England · Mon 25 Aug 2014 6:47PM
Taxes aren't the problem.