Comprehensive Capital Tax And A Guaranteed Minimum Income

Ok, so I did say that I would be posting on random things of interest. So here we have a brief interruption of posts on writing and mad schemes to move houses to talk about taxes.

Yesterday the Governments Tax Review Think Tank returned a very interesting report. As part of it Garath Morgan put forward a radical new vision for the tax and welfare systems of New Zealand. I quite like what he proposes, and would like to see more detail and a real debate occur about the effects of such a system. In essence he proposes introducing a guaranteed minimum income of $10,000 for every adult. This would replace most of our convoluted benefit system. There would be no abatement for jobs or right-offs or reductions. Thats what everyone gets from the government. After that the tax system would work on a flat rate of 25% and would include a %1.25 tax on all capital.

I think the only group’s that would really object to this are the immoral loonies who seem to think that people should be left to starve, rather than society taking a role in protecting it’s citizens from extreme poverty.

Off course the devil will be in the detail if this gets any traction, but I certainly hope it does.

Some thoughts:

What age does the GMI come into effect?

Could we also look at GMI for children say at a third of the adult GMI, that is paid to principle caregiver?

What happens for those who really can’t work?

Anyway it is potentially a system I would support.


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