Chlöe Swarbrick is reported by the National Business Review as being adamant that tax reform is needed in NZ. She says that adopting a capital gains tax is just "basic economic sense". I wonder which books in economics she is reading?
Das Kapital by Karl Marx? So what is "basic economic sense" according to the author of the world's best selling textbook in economics, Greg Mankiw? This is what he states in his article, "Optimal Taxation in Theory & Practice" (see page 167) in the Journal of Economic Perspectives: "Perhaps the most prominent result from dynamic models of optimal taxation is that the taxation of capital income ought to be avoided". The logic "is powerful: the supply of capital is highly elastic, capital taxes yield large distortions to intertemporal consumption plans & discourage saving, and capital accumulation is central to the aggregate output of the economy".
Why do many folks believe productivity is particularly weak in NZ? Because we are a "capital shallow" economy, according to the Treasury and now defunct Productivity Commission. Poor countries have lots of labor and little capital, which leads to low wages, whereas in rich countries its the other way around. At present, NZ is driving up labor with record-breaking immigration whilst GDP per capita, and productivity, are plummeting. So what is Swarbrick's mind-bogglingly contradictory intervention into the tax debate? That in order to improve our prosperity, its "basic economic sense" to tax capital more. Since when did you get more of something by taxing the pants off it?
The Green Party under Swarbrick has a new way to achieve its Net Zero carbon goal - its by aiming for Zero Capital and Zero Sized Economy. Add to that the Green's desire for humans not to breed - which is what they have been advising our school children - then in one more generation there will be no people left to pollute, and the Greens will be at last happy, not that there will be any of us left to be happy. What's a more sensible path? To encourage business formation, entrepreneurialism and the capital accumulation that goes hand-in-hand with it, particularly aimed at creating new technologies that make producing energy with fewer carbon emissions cheaper.
14 comments:
What Swarbrick knows, let alone understands about Economics can be found written on the back of her business card.
Surely the Greens push for no babies is a good thing. The only people that will take any notice are those we could surely do without. The finger pointing, Ev drivers, sitting around the table at the fashionable cafe, sipping their current tipple served by some swarthy bloke who can bearly speak English, but leaves his shirt undone to provide a suitable level of titillation. All while moaning about how we should do something (as long as it doesn't actually impact their sheltered lives).
So encouragement is what we should be giving them on their cry's of don't breed.
That’s the trouble with common sense, it’s not so common.
Take for example a politician with no expertise or education in economics or finance telling the country how its finances should work. Does that sound like good advice?
Nah!
Chloe 'reductive argument espousing motormouth' Swarbrick should pull her ignorant head in. But as you rightly identify Robert, her ideal society would contain a whole heap of gender questioning non-breeders living off the backs of others who do actually work - the smarter of whom will have long since emigrated if they ever get close to bringing such a policy into effect.
What I don't get is that despite their many imbecilic utterances; what they encourage being told to our kids; and a number of them proving that they are of very dubious moral character and are far from role models, they still manage to increase their polling? It seems not only is the average Kiwi complacent, but they are far from discerning too. Sad!
Chloe giving economics advice is like...Golriz advising on retail security measures...or Julie-Ann advising on peaceful negotiation and anger dissipation.
You'd need rocks in your head to vote Greens...which is exactly what over 1 in 10 Kiwis have, rattling around beating their undersized brains to a pulp, according to recent polls.
A clear lesson: no one should go direct from university into politics.
Young people with no life (including professional ) experience - and no common sense - are a burden on the tax payer and an insult to the latter's superior mental capacities.
The Green's woke Marxist-driven ideology is costing NZ a fortune.
If Swarbrick really wants to reduce CO2 emissions, she and all the Greens, could do their bit by stopping breathing !
Her statements are always 'evidenced based' so it must be true folks. The Greens continue to supply endless material for a new Monty Python series.
NZ is drowning in Chardonnay Communists.
The gretaes virue of the Greens is thier name which cons the multitude. Low or even no breeding would be commendable if taken up in the main by those genetically less suited to the modern world. But the opposite tends to be the case so that the latter end up dominating and under democracy rule (ie SA) Not ideal for the human race or the world.
There is a case for otherwise untaxed capital gain taxed at a modest rate but to fully account for is formidible. To be logical has to apply to family home then some way found to not discourage moving. Ideally deferrable to death but many would then contrive to avoid.
The green idiots are pushing for lowering the voting age.
Imagine where that would take us.
Specially us white stale males.
A first for me…I agree with Swarbrick and disagree with Prof Robert! The lack of a capital gains tax distorts our economy. It’s also unfair in that it penalises income earners to the benefit of investors.
Why should my children pay excessively high income tax while I pay no tax on my capital gains. Capital gains are part of the earnings from my investments. I pay tax on the interest and dividends but nothing on the capital gains.
Anna Mouse - that's an oxymoron - Chloe Thickasabrick with as business card !
She has zip up understanding of business as she has never owned one, or managed one.
Why are people like her given any oxygen ?
A certain ex Green leader with half a dozen kids from different fathers cheating the welfare system, excellent credentials for the Green party to preach to us. Kiwialan.
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