Quote of the day:
I used to be puzzled that opinion polls showed more support for increasing government spending than for reducing taxes. The answer, however, is that most people don’t pay much in tax after adjusting for the various benefits they get from the state. . .
Rob Stock wrote “when it comes to income taxes, New Zealand is something of a tax haven because when Working for Families rebates are taken into account, 40 to 50% of households ‘effectively pay no net income tax, and roughly 40 to 50% of total net income tax is paid by those in the top 10% income bracket’”.
Actually, if one were to do a full analysis, of what people pay to the state less the financial and non-financial benefits they get from the state (taking into account near-free healthcare and education, benefits, New Zealand Super, police, etc), I have no doubt that the vast majority of the population are “net recipients” of state largesse, with a small minority paying the overwhelming bulk of the net taxation. Why on earth would most people vote to reduce taxation – most people aren’t paying any (net) tax! Don Brash
Of course the don’t pays don’t care if government spending rises, it’s not their money funding it.