John Key's knock-out blow

Michael Cullen's fury and condemnation of the National Party's tax cut plan and economic policies was clear yesterday. I doubt very much whether he slept much last night.

He didn't have much to attack Key on so critiqued the tax package politically rather than its practical measures(it ain't that practical to me though) because it is a package he would have liked to pass himself.

It gazumped Labour's own tax cuts in sheer figures but there was more icing on the cake in the form of big vote capturing for National.

It targets Labour's key demographic, the lower middle class and will capture a large number of voters come election day. It also concentrates on the middle class, where alot of swinging voters lay and the vote is going to swing National's way here again.

The Kiwsaver changes make sense, more money in peoples pockets now rather than forced to put too much away for latter, while at the same time keeping a portion of the savings quotient will be important during the coming Cullen managed deep recession.

Even the one trick pony Mary Holmes says the Kiwisaver changes make it much more attractive.

A simple master stroke of politics for Key. He looked very comfortable during his speech to the faithful yesterday and in a grilling by the Gnome on Campbell Live yesterday was very easy going and it was clear he was in his element.

To me it looked like John Key's knock out blow.

Labour isn't in a position to buy their way out of this election as an antidote to National's tax package, but look for them to try some sort of vote buying lunacy by playing around with numbers-a cooking of the books.

c Political Animal 2008

Dont quote me on that

"Tax cuts next week would help stimulate the economy"

-Michael Cullen Sept 26 2008

This wee sentence by the Deputy Dr will now be etched into history as a major turn around in fiscal and ideological thinking.

Consider these quotes:

“We just don't believe in tax cuts - it's against our fundamental philosophy - after all we are socialists and proud of it.”

-Micheal Cullen 

"Tax cuts are a very sort of blunt weapon to redistribute income"

— Mike Williams, President of the Labour Party

"Tax cuts are a path to inequality. They are the promises of a vision-less and intellectually bankrupt people"

— Helen Clark, speech to 2000 labour Party Conference

I am confused, do tax cuts stimulate economies or are they only fit to do an unthinking Robin Hood trick with your money when there is a philosophical shift prior to a general election?

c Political Animal 2008

"Little Prick" Michael Cullen misjudges economic turmoil,again

The current market turmoil and subsequent downturn in global economic conditions are great reasons why National should go ahead with their "$50 tax cut" plan.

There has been much fuss made by the uniformed and ideologically bent Michael Cullen over this issue:

He suggested the forced sale of Mr Key's former employer - Merrill Lynch - in the US showed the National Party leader was not a safe pair of hands to manage it.

"You don't want a gambler and short-term money market player who will risk billions and billions of dollars. We are seeing in the United States the consequences of that kind of mentality unfolding right now."

That is not only sneering and sticking the knife into people who may have lost money, people mikeyboy calls "rich pricks" but it is patently misleading.

During downturns such as these one of the best things a Government can do is stimulate the economy. Using tax cuts to do this is the perfect way to ease the economic pressures in the short and long-term.

Of course Cullen's antidote to the current problems will be to tax New Zealanders more.
For people out of his depth, such as him-he has a doctorate in history-raising taxes will be a way of "protecting the State" something he loves.

Bugger the proletariat though, he has a different feeling for us.

So if you are expecting this individual to manage New Zealand's way economically well over the next 3 long turbulent years just remember who led you into the current mess.

He has mismanaged the economy for the last 9 years under the best  economic conditions for generations, imagine his ideological tax and spend ways under a deep recession.

It would be an unmitigated disaster.

He has had a chance.

Vote the "little prick" out.



c Political Animal 2008

Cost of Labour's 2008 Election bribes

I thought it would be very interesting to see the cost of Labour's election bribes so far.

A good concise list of what it is they are spending the money on, and how much it will cost the working taxpayer.

Some of it might be legitimate, some of it bordering on legit but most will be out and out handouts to prospective Labour voters.

Lets take a look.

1. KiwiRail purchase - cost NZ $665 million, plus hundreds of millions to "upgrade it" and keep it running. Altogether, including missed economic growth from keeping the money in taxpayers hands, $2 billion plus. Election bribe.

2. $10 billion in "tax cuts" mostly focused on those on welfare-working for families -and at an average of $16 per person hardly worth legislating for. Election bribe.

3. Increase in working for families-$200 million plus per year, 600 million over a 3 year term. Election bribe.

4. 1.7 Billion in lost capital value for Auckland International Airport shareholders because Labour stopped the sale of this private asset to buy votes. Election bribe.

5. Corporate welfare for research and development, cost $700 million. Election bribe.

6.Universal student allowances. Cost $728 million. Mooted but it will go ahead. Election bribe.

7. South Auckland "University". Cost, $25 million to purchase land and hundreds of millions more to develop. Not needed as Auckland already has 4 universities. Election Bribe.

8. Mt Eden Prison, Cost, well north of $250 million and unnecessary. Bunk beds will do. Election bribe.

Other costs with some merit but nonetheless some of the better ones could have been done earlier in Labour's term.


* $750 million in new health spending (includes first year of $160 million announced over weekend for elective services).

* $621 million in total over five years to boost Ministry of Foreign Affairs and Trade.

* $446 million over four years to boost funding for community organisations.*
.
* $164.2 million over five years for a cervical cancer immunisation programme.

* $150 million a year on educational changes to keep young people in school or training until they are 18.


The cost so far to the taxpayer?

Just over $18,000,000,000.00 , that is Billion with a capital B folks. You will have to pay this out of your taxes should Labour buy their way into power.

Keep checking back. I will update this list as the election grows nearer and Labour gets more desperate and disparate.


Related Political Animal reading

At least Robin Hood was honest
Labour's State control out of control




c Political Animal 2008

Kiwis breathe a sigh of frustration, not relief, over distant meagre tax cuts

c Tom Scott, Stuff.co.nz 2008


In a story in yesterday's NZ Herald Mr Cullen said tax cuts in October would bring "relief".

"From October 1 all New Zealanders will get a tax cut that should provide some relief from rising prices." Michael Cullen 16.7.08

Well, I don't get tax cuts from that date because I'm self employed and 10s of thousands of other Kiwis are as well.

It seems bizarre that Dr Cullen would trumpet "tax relief" when Kiwis need it now. They actually needed it years ago. Labour decided to stop taking as much tax off us in the budget this May but the 6 month wait makes Labour's decision political rather than any sort of benevolent government helping out the proletariat. On average the October cuts are equal to less than one block of cheese.

National would have brought their tax cuts in with urgency and unlike Dr Cullen's election bribe, tax cuts were something that the National Party have been pushing for years. Dr Cullen doesn't believe in tax cuts, he thinks the State should spend your money.

“We just don't believe in tax cuts - it's against our fundamental philosophy - after all we are socialists and proud of it.”— Dr Michael Cullen


We can however have a NZ$ 2 billion decision to buy 17th century technology, KiwiRail, made on the fly instantly, lose $1.5 billion of shareholder money by stopping the sale of the Auckland Airport, and increases in road user charges and an extra tax on petrol for all, both increasing cost to the average kiwi and more than wiping out any tax cut come October. But we cant have the meagre tax cut now?

In fact the amount of Government promised election spending so far announced by Labour puts the tax cuts in the shade. We will all be a least $30 pr week behind thanks to Cullen's "generosity" in the wake of an election.

Remember this when you cast your ballot this November:

My view is that tax cuts are largely offered as a political bribe, not because of beneficial economic or social effects.

— Dr Michael Cullen



Related Political Animal reading

Michael Cullen speaks with forked tongue
Cullen's history on tax cuts comes back to haunt him
Wednesday Political Soup: Edition 3 2nd story down - Let them eat cake
Labour and their last crusade



c Political Animal 2008

Labour and their Last Crusade

“We just don't believe in tax cuts - it's against our fundamental philosophy - after all we are socialists and proud of it.”

— Dr Michael Cullen


No wonder Dr Cullen found it difficult to announce his meager tax cuts in this weeks 2008 budget announcement, because his party simply does not fundamentally believe that personal tax cuts are deserved by the working people of this country.

Cullen of course believes that he knows best and that he should hold on to most of your money because he knows best how to spend it. He has done that for 9 years now and simply because it is election year he is giving your money back at an average $16 per week. The price of a ticket to the latest Indiana Jones movie.

We all know that tax cuts do stimulate economies but this is far too little and far too late. Costs imposed on individuals and business by Labour put us way behind where we were in 1999 and most workers would require $200-300 to have them back at status quo.


Related Political Animal reading

Michael Cullen's history on tax cuts comes back to haunt him
Pointing fingers in the playground
At least Robin Hood was honest
The black economy makes sense
Labours State Control out of control

We can exclude so-called "working for families" from the tax equation because it is welfare and we are talking about tax cuts here and not handouts.

The focus of this budget on yet more welfare, through working for families, higher student allowances and unemployment benefits and higher profligate spending on embassies, Governor General house renovations and train set purchases just shows where Labour's priorities lie. The extra spending on these u necessaries far outweighs their meagre cuts in taxes and in these dire economic times you cut back on spending, you don't spend more on luxuries.

That is where the wriggle room for National comes in promising more money going back to those who earn't it in the first place.

A far better tax cut regime would have been the first NZ$10000.00 tax free and a progressive rise to around 20% tax rate to $30,000 of income then a tapering off to 10% after that as incomes go higher-an incentive to work harder/smarter, instead of the current disincentive as the tax rates go higher the more you earn. That ain't going to happen under National either but one can dream nonetheless!

If this was a budget to help pout those in need because of the current blow out in oil, food and service prices then the October 1 cuts would have been brought forward to June 1 but there will be an election not long after Oct 1 and as Michael Cullen rightly says:

My view is that tax cuts are largely offered as a political bribe, not because of beneficial economic or social effects.

— Dr Michael Cullen

Cullen's maxim doesn't not apply to National as they have always been consistent on personal tax cuts. They believe in them, they always have and it has always been one of that party's main economic tenants-that is, kiwis know best how to spend their own money, not the government.

A chorus that has been sung by Labour since our economy went pear shaped and reiterated in the budget is that "global economic conditions" have affected our economy. Sure they have, but the largest negative affect by far has been Labour's mis-management of the economy for the last 9 years. Hard work by our businesses and middle classes (those that provide the bulk of taxes) provided the best economic conditions in generations but the good times were squandered by Labour. High taxes, regulation and reckless government spending have led to a doubling of mortgage rates, higher food and energy prices and inflation. These things happed before any global slowdown and it is simply a lie to say otherwise.

What was needed in the 2008 budget was a vision for its people. That is, a strong focus on hard work and personal responsibility and incentives to enable that. What we got was more of the same. Energies channeled on State involvement in our lives and a tax and spend policy that would extend into a Labour 4th term should we all be unlucky enough to have them foisted upon us again for another 3 years.

We will leave the second to last word(because I always get the upper hand over her) to our Aunty Helen:

Tax cuts are a path to inequality. They are the promises of a vision-less and intellectually bankrupt people.— Helen Clark, speech to 2000 labour Party Conference

Tax cuts are actually the path to fairness, equity and personal responsibility, the intellectually bankrupt tag goes to those who disagree or would cut personal taxes weeks before an election.




c Political Animal 2008

STUFF: Fairfax poll & Political Animal commentary

The latest fairfax political poll continues the trend from last year where National started to show a wide gap. This gap has not only continued but has got wider as time goes on.

It is clear to voters, Labour or National, that voters want their money back, in the form of personal tax cuts. Not State sanctioned welfare like working for families or one off dollops from those that earn the money to those that haven't. They simply want their own cash back in the hand on a weekly basis, without state apron strings involved or mixed up in loony taxpayer subsidised "savings" schemes like Kiwi saver.

The billion dollar plus price tag for a train set and not dividends in their pockets, seems to be yet another motivator for long suffering middleclass taxpayers to get on track to get back what they deserve.

Their own moola!


Political Animal Reading


Michael Cullen speaks with forked tongue
Pointing fingers in the playground
At least Robin Hood was honest
The black economy makes sense
Labour's State Control out of control




Stuff poll and commentary

National is on track for a landslide election win with a 27-point poll lead over Labour.

On today's Fairfax Media poll, Labour faces an election night rout that would oust 14 sitting MPs and deliver National a 13-seat majority.

Finance Minister Michael Cullen is now under huge pressure to deliver an election-winning Budget next week or face the backlash from voters seeking relief from rising pressure on household budgets.

But on today's result, voters have already written Labour off and it may take more than the modest tax cuts signaled by Dr Cullen to turn that around.

The Nielsen poll for Fairfax newspapers suggests that not just the size but the timing of any tax cuts could be critical, with voters saying they want relief now, even if that puts pressure on interest rates.

Just over half of those questioned - 51 per cent - don't want to wait for tax cuts, even if that means interest and mortgage rates stay higher for longer.

It suggests that Dr Cullen's argument that early and sizeable tax cuts will only push up interest rates and delay relief for heavily mortgaged households does not wash with voters.

Kiwibank cut its two-year fixed-term home loan rate to 8.99 per cent yesterday and other banks are expected to follow in anticipation of a cut in interest rates by the Reserve Bank.

Today's poll will send panic through Labour ranks. National's lead is a turnaround from polls which had Labour closing the gap - the previous Fairfax poll had National and Labour 18 points apart.

National Party leader John Key said yesterday that voters were sick of Labour.

"They're tired of the fact that they're so out of touch with issues that concern them in their daily life."

National would fight the election on tax cuts, which would be a defining difference between the two parties.

"All the messages that Labour has given off in the last two months is that tax cuts will be relatively small."

Prime Minister Helen Clark, who is in South Korea, could not be contacted for comment.

The poll put the Greens on 6 per cent - safely above the 5 per cent threshold, where they were joined by NZ First on 5 per cent.

That could put NZ First leader Winston Peters back at centre-stage in any post-election deals, though on current numbers National could easily govern alone.

The poll questioned 1091 voters between Wednesday May 7 and Tuesday this week and has a margin of error of 3 per cent.


Discuss Politics
New Zealand Budget






c Political Animal 2008

Wheres the Love? [Extended Political Animal Edition]

Government cost to business hasn't been ameliorated by today's quadrangle of
State interference that kicked off, appropriately, on April 1.


Just we wee addendum to the original article. In parliament today, listeners would have heard Michael Cullen et al waxing lyrically about how much the Labour Government had "given" to New Zealanders over the years and the latest raft on handouts, mentioned below were added to the long list.

Labour gave us free student loans, more holidays, 20 free hours childcare,higher wages,more holidays,corporate tax cuts, yadda, yadda.

The point is clear to me and underlined by a great speech by Act's Heather Roy who just happened to mention that Labour gave us none of those things. It was our money to begin with and how about giving some of it back so we can make our own decisions about what we want to do with our moola!


Originally published @ Share Investor Blog 1 April 2008

I cant help myself talking about it, politics is intrinsically linked to investing and business and in New Zealand our economy is hugely influenced by what the government of the day does to it more than most global economies.

The introduction and trumpeting today by our Labour government of 4 things that "they are proud of" that will "help business" has less to do with helping business but more to do with election year and keeping control over the economy and its participants.

The much ballyhooed 3% cut in corporate tax rates, taxpayer handouts to business for research and development, employer contributions to Kiwisaver and the lift of the minimum wage to 12 bucks all run against each other in their purpose and execution.

The over hyped tax cut and R & D subsidy for our corporates hides the fact that Kiwisaver, the associated paper work and the lift in wages easily dwarfs the meager 3% cut already.

Include all the other government imposed costs to business over the last 9 years, like higher ACC, energy and carbon taxes and nonsense like employer funded maternity leave(what is wrong with the family paying, a novel idea I know, but just an idea) and an extra weeks leave for workers and even the blind, deaf, dribbling and Labour voters(OK maybe that is a stretch) can see how far behind business is.

The tax cut would have to be at least down to a 25% rate to get business back to where it was in 1999, in terms of costs and return of capital.

That way, business could afford to fund R & D from cashflow instead of another army of extra State funded bureaucrat's handing out taxpayer money to those they see should get our money-I mean these people picking business winners? I doubt many of them can remember their PIN numbers let alone pick good businesses.

What is missing from today's election focused "take more it and give some back" approach to business is a bold statement to business, especially small business, the back bone of this country, that the country values your contribution and we are going to reward your entrepreneurship.

State attached funding via R & D subsidies and other quasi government welfare schemes, extra business expense and paperwork isn't a good way to show that we love business.

I fear the present administration doesn't like the independence and confidence that self employment or owning your own business brings and are doing everything they can to inextricably link business owners quest for economic freedom by weighting business and therefore the economy down with cost and bureaucracy.

A 3% company tax cut isn't going to cut it for those hard working individuals who own companies and in fact bypasses those who are sole traders entirely.

Its time to show business we love them.

Not the opposite.


Related Political Animal Reading

Labour's State Control Out of control




c Share Investor & Political Animal 2008

Michael Cullen speaks with forked tongue

c Emmerson 2008



Some days it is hard to take Dr Cullen seriously. Today is one of those days.

While commenting about his tax cuts this year, engineered to buy the 2008 general election he let a sly one past.

I had a loud chortle to myself when listening to a Newstalk ZB audio clip live from the exciting port metropolis of Napier, that the main reason for New Zealand's record high interest rates was the current "credit crunch" that the world was facing and we would also be facing higher food and energy prices.

It slipped his mind(who's slippery now Mike), perhaps after a chardonnay or three, that the reasons for high interest rates and other rising prices was the fault of himself only.

Let me dispel the myths Dr Cullen!

Record high government spending by Labour on wasteful social engineering schemes has pushed up our official interest rates to 8.5% up from half that before Labour began its sentence on its citizens back in 1999.

A plethora of extra taxes including : employment, ACC, fiscal drag, electricity and gas taxes has led to higher inflation and therefore increased food prices.

What is really scary though is that Cullen is set to add even more taxes onto our already burdened and beaten economy in the form of a whole host of nonsense global warming taxes.

Up to 20c a litre of petrol will be added by local and state government this year and carbon credit trading will add additional cost to everything we buy, be it a service or product. In effect it is like another GST, except we don't know how much that extra cost will be.

Allan Bollard mentioned the added inflationary costs of these GW taxes but our mainstream media seemed to have collective ignorance over these basic economics.

Cullen has strangled the economy so hard with his overburdened taxes and spending, last month taxes actually dropped by over $700 million.

Don't be fooled, Dr Cullen is a bright man, regardless of his mis management of the economy over the last 9 years.

He has a philosophically socialist agenda though, with all its attendant consequences(and expenses) and he is clearly sticking to it come hell or high water.

More than ever now we need tax cuts, they stimulate economies, especially during dark times like these.

Dr Cullen's track record is poor, his handling of the economy during economic conditions the best we have had in generations borders on the slippery. He has crowed for the last 9 years about his results, given these conditions, which he had no influence on, but now abdicates that responsibility now that the brown stuff has hit the you know what.

Hang on, if you are a socialist you can take the plaudits for something you didn't do and abdicate responsibility for your failures, all at the same time keeping a straight face.

You cant have it both ways Dr Cullen.


Related Political Animal reading

Cullen's history on tax cuts comes back to haunt him
Global Warning: Tax iceberg ahead
Carbon credit trading puts global markets at extreme risk
Global Warming: Power to the people
Wednesday Political Soup: Edition 3 2nd story down - Let them eat cake



c Political Animal 2008

Michael Cullen's history on tax cuts comes back to haunt him

Michael Cullen's education as a Dr of History clearly lacked the basic tenant that as history is more often than not written down for posterity it can often come back to haunt the history maker:

"We just don't believe in tax cuts - it's against our fundamental philosophy - after all we are socialists and proud of it".A hardly stunning admission by Michael Cullen a while back but hard to fathom considering his announcement of personal tax cuts in an address to the Auckland Chamber of Commerce today.

Cullen trumpeted 4 billion dollars of tax cuts annually and gave examples as: " working for families, business tax cuts and Kiwisaver.

Of course Working for Families is not a tax cut but welfare, Kiwisaver isn't a tax cut either and business tax cuts were long ago gobbled up by Labour Government imposed business taxes like increased holidays, Kiwisaver contributions and administration, Government imposed energy hikes and a whole range of other taxes too long to list here.

If there are any tax cuts this year or in the following years by Labour, they will be linked to a Government agency and distributed that way not by the usual method of more cash directly in the hand.

Strangely enough, a 66c across the board tax cut was promised in the 2005 budget, coincidently another election year, but Labour broke their promise after reelection because they commented that economic conditions didn't allow such a cut.

Now 3 year latter, and with a crippled stagnant economy tax cuts are going to happen?

The truth is though Labour were and never will deliver proper tax cuts because they are philosophically opposed to them:

"Tax cuts are a path to inequality. They are the promises of a visionless and intellectually bankrupt people".

— Helen Clark, speech to 2000 labour Party Conference

On the contrary though, tax cuts show true vision and are not only "intellectually enriching" but in the long term they enhance every sector of society, socially and economically.

What is "intellectually bankrupt" though is promising personal tax cuts in election year.

The facts are that any time is a good time for tax cuts. They stimulate business and economies and have an upside long term, not a downside on the tax take by governments, and are especially relevant during the tough economic times we are now going through.

Tax cuts have been affordable since Labour came to office almost 9 long years ago and the excuses used to dodge such cuts have been coming as thick and as fast as Parekura Horomia on speed.

Cullen sites several: "we will have to cut Government services", "tax cuts lead to inflation and higher interest rates", "we will have to borrow money to fund tax cuts".

All clearly bollocks.

What has led to inflation and the highest interest rates in the Western world is reckless Labour Party spending, cut that and you can afford to return stolen taxpayer funds.

Ditto borrowing and government services, cut back Cullen, New Zealanders have, and have had to borrow because of your tax and spend mentality.

Finally, Cullen hinted today that any tax cuts must be "fair" and he clearly meant that those who earn't high salaries, probably wont be getting a tax cut.

Those earning higher salaries don't traditionally vote Labour anyway so they will be left out if there are personal tax cuts, but in an ironic twist, those receiving welfare through "working for families" benefits, mainly middleclass voters who could vote either National or Labour, maybe getting some of the taxes back that they have been paying to fund WFF in the first place!

Cruel but true.

I will leave you dear readers with a quote Robin Hood probably originally made:

"Tax cuts are a very sort of blunt weapon to redistribute income"

— Mike Williams, President of the Labour Party

To sum it up Labour's real attitude to tax cuts. Firstly Labour clearly don't believe in them and they truly believe that the high taxes they have imposed are there to "redistribute income".

You certainly can't vote for a party like Labour, The Green Party, The Maori Party, NZ First, Jim Anderton because they all fundamentally agree with Cullen, the Labour Party philosophy on tax cuts and cannot be trusted to deliver as part of a Labour-led Government in 2008.

Vote for either Act or National, they have promised real tax cuts and have done for years.

Related Political Animal reading

Pointing fingers in the playground
At least Robin Hood was honest
The black economy makes sense
Labours State Control out of control




c Political Animal 2008

The Black Economy makes Sense

No the title of this post isn't really about slave labour but it might as well be.




New Zealanders have been beaten over the head over recent years regarding tax cuts. Labour has been taxing and spending their way through the last 8 years and National have promised to give back the stolen booty should they seize the Treasury benches in 2008.

What have these high taxes been doing to our economy and what do they do to economies in general though?

If New Zealand Inc was a business, apart from the fact that it would be a very small one on a global scale, its shareholders would be demanding higher dividends, more accountability for company spending and more investment back in the "business".

The high rate of tax removed from NZ Incs balance sheet hasn't gone back into productive spending, it has really been taken out of the business completely, washed through many levels of management and then spent on fast cars, big houses, expensive chocolate biscuits and left handed screw drivers for the company executives and their friends.

Certainly not the kind of spending that produces income and also not sustainable in the long run.

If this huge amount of tax money was allowed to stay in the business of New Zealand Inc then the company would clearly be manifold times better off than it is now and we would all benefit from some quite large special dividends.

Lowering taxes actually stimulates economies and business and in the long run more tax is collected because the business functions allot more efficiently because capital is not tied up or wasted in pockets burning to spend it on wasteful things.

One only has to look at economies with low tax rates to see how well they do. Ireland and Singapore are two excellent examples of how well economies do when they are not burdened with the weight of high taxes.

Of course the "black economy", where there is no tax and only two participants, the buyer and the seller, involved in the transaction, is the single most efficient form of economy or business there is.

The way of the world of recent decades has been to cut out the "middleman", chain stores like Walmart and The Warehouse get goods delivered directly to their warehouses instead of buying through an importer and most retail now works this way.

Perhaps the most obvious example of the middleman not longer taking his cut is business done through the Internet.

Musicians, writers, movie makers , individuals auctioning their household furniture and a whole host of entrepreneurs are now doing business without using a go between with his hand out taking a cut of your income.

It is so efficient, why wouldn't you!

This is why the Internet works so well for business. It is most like how the black economy in the "bricks and mortar" world works.

Lets strip out those extra burdens to business and economies, the high taxes, and then we will all prosper for our hard work, as we should.

Clearly there needs to be some sort of nominal tax, of about a 10% maximum, to allow defence and police to function but any more than that just encourages waste and inefficiency.

I wont hold my breath but it is worth writing about so at least it might plant a seed in some of my dear readers heads.




c Darren Rickard 2007

Wednesday Political Soup: Edition 3

Two Time Loser

Last week saw the Labour Party chief finger wagger Steve Maharey announce that he wasn't going to run for the 2008 Election but take up the offer by Massey University for the position of Vice Chancellor.

He was previously a student, then a lecturer at the University and after nearly 18 years in Parliament has never held a productive job in the private market sector in his life.

A perfect candidate for the Labour Party of course but both Labour and Massey University will be losers. Losers because Labour need an effective smarmy politico to push more nut case lefty social reforms and Massey are big losers because they are lumbered with a collectivist who will want to push the same sorts of "Labour Like" Socialist reforms on campus.

The only winners will be the New Zealand public who no longer have to put up with this control freak who was behind one of this countries biggest attacks on the family, the anti smacking law, that was passed earlier this year.


Say what?

Dillousional Labour MP
Darien Fenton.

From the department of silly walks and departmental office of equidistant paper clips comes news this week that Labour wants to outlaw working over 40 hours per week.

That is, not just lowering the working week and allowing workers overtime rates after that but making it illegal to work more than 40 hours!

State worshiper and freedom hater, Labour MP Darien Fenton says, "employees currently work too hard". She says the grind of long hours at the office is, "causing too much stress".

Surely individuals are big enough and ugly enough to decide whether they want to work or not eh Darien?

No, not Ms Fenton, a lifelong union "advocate" and succubus of the working man.

Quite apart from the stupidity of Fenton's idea, the chaos that it would cause employers , employees and the economy would be horrendous and would be vast and far reaching.

Employees would have to apply for state assistance to provide additional income and employers would have to find extra imaginary employees to fill the vacuum left.

It fits the Socialist argument that everyone should be equal though, and that of course extends to income, where Labour's bright idea for a 40 hr week would be yet another tool to achieve that end.

France tried the 35 hr week and it nearly sunk their economy. They are of course now trying to move away from that sort of nonsense.


Let them eat Cake


"A lie told often enough becomes truth" Lenin

Tax cuts are on the agenda again this week.

Yes Micheal "Fiscal Drag" Cullen has been making excuses again in Parliament as to why he wont give back the money he has stolen in high taxes to those that earned the money in the first place.

This quote may help out readers of this column:

"The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation" Lenin

Replace bourgeoisie with middle classes and you get what Cullen and Helen Clark are doing to New Zealand's new proletariat.

Nanny State worshiper Helen Clark is also a disciple of Lenin and seems intent on grinding the masses to a lifeless pulp or until most of them leave to live in Australia.

Cullen and Clark are not about to relinquish the control that they have over the hapless middle class that comes with high taxes.

Any "tax relief" in the grab for control next election year will come in the from of State sanctioned or controlled benefits, like the "working for families" welfare package and bribes that have some sort of State apparatus attached to them for absence of the State means no control over the people:"When there is state there can be no freedom, but when there is freedom there will be no state" Lenin



PC Banging


Almost the end of a Kiwi institution this Guy Fawkes Day when a multitude of restrictions come into use over the sale and restriction of fireworks.

Sure, fireworks are dangerous but they are also fun and the labeling last year by David Benson "Tennis Ball" Pope of Kiwis who like to have a little fun with fireworks as "naughty boys and girls" and if they don't behave public use of fireworks will be made illegal is more than a little over the top when one considers what Mr Pope used to do with school pupils in his days as a teacher in Tauranga.

State sanctioned hand wringing will be De rigour again this year and it is possible that State run firework displays will be sanctioned by the anointed should New Zealand have the misfortune of morons having them elected again in 2008.





c Darren Rickard 2007