Vecordious – crazy, insane, lunatic, mad senseless.
. . . why other people’s mess is messier than your own.
Labour’s proposed capital gains tax will exempt payouts from superannuation funds but it will apply to property which many of the funds invest in.
For the first time in decades, New Zealanders are acting on the message to save. But if Labour’s policy is enacted, some of the returns from those investments will be eroded by CGT.
The New Zealand Superannuation Fund and ACC have both invested in farmland and other property.
The negative impact Labour’s CGT will have on both of them will be among the boring details the party doesn’t want to trouble us with.
How can Labour spin the latest One News Colmar Brunton poll result? Let me count the ways:
1. Only one poll counts.
2. It’s a rogue poll.
3. We can pretend we didn’t leak details of the capital gains tax before polling was done.
4. Polling was done before the tax package was announced and that will be a game changer.
5. The tax policy is irrelevant because people aren’t interested in details.
6. Our supporters don’t have phones.
7. Our supporters are out/too busy when polling companies call.
8. Polling companies are owned by rich pricks.
9. We’ve got more than four months to turn things round.
10. We don’t comment on polls.
Labour’s tax plans would leave a gaping hole in public finances and add $18.5 billion dollars to net crown debt, Associate Finance Minister Steven Joyce says:
“At a time when an increasing number of large countries are wrestling with severe problems caused by too much debt, Labour’s recipe for New Zealand would be to borrow more each and every year on volatile world financial markets. . . “
Treasury’s models which are used for economic and fiscal projections for Budgets show Labour’s tax increases would raise around $21 billion of extra revenue out to 2024/25 while at the same time they’d forgo about $28.5 billion in revenue.
“That leaves a $7.5 billion revenue hole, on top of another $7.5 billion in extra interest costs Labour would have to pay on their higher debt. In addition, Labour would need to borrow billions more if it doesn’t proceed with the mixed ownership model for SOEs, pushing total net Crown debt $18.5 billion higher by 2024/25.
This would also put pressure on interest rates which would add costs to for households and businesses.
“And that is all on the assumption they could start a capital gains tax in 2013 and raise billions of dollars despite all their complicated exemptions and loopholes.”
The main reason for Labour’s debt and deficit blowouts would be:
-They have underestimated the costs and overestimated the revenue from almost all of their promises.
-They have no basis for adding in $300 million a year from tax avoidance measures – on top of the $800 million a year the Government is already on track to obtain from Budget 2010 measures.
-They have failed to include extra interest costs on their higher borrowing.
-They have not factored in the need to borrow billions of dollars more to maintain the Government’s level of capital investment – in the absence of proceeds from the mixed ownership model for four State-controlled energy companies.
To make matters worse, they have hidden in their numbers an Emissions Trading Scheme based on a $50 per tonne price for carbon across the entire scheme. That would mean Kiwi households would have to fork out four times as much for the ETS as they do currently under the National-led Government’s more balanced scheme.
Labour has made it quite clear they see the ETS as simply another way to raise revenue.
“And, of course, Labour has already admitted it will spend more. It is yet to announce its spending promises, but has railed against every decision this Government has made to contain spending. Any new spending would add even more to Labour’s debt each year,” Mr Joyce says.
Labour criticises every move National makes to rein in spending and has made absoultely no commitment to fiscal restraint should they get hold of the public purse again.
“When you look through all the spin, it’s the same old Phil Goff and Labour: overestimate the revenue, underestimate the costs and borrow the rest.
“In stark contrast, National has a credible plan to balance the books and start repaying debt within three years. We are building on the encouraging economic growth figures released last week with a plan to take New Zealand forwards, not backwards.”
There are those who can count and those who can’t. Then there’s Labour which doesn’t appear to worry about counting at all – and hopes the rest of us either can’t count or aren’t interested.
Their tax and spend policies put New Zealand into recession before the rest of the world and each policy announcement confirms they’ve failed to learn from their own past failures.
The breakdown of the costs of Labour’s package is here.
390 BC Roman-Gaulish Wars: Battle of the Allia – a Roman army was defeated by raiding Gauls, leading to the subsequent sacking of Rome.
64 Great fire of Rome: a fire began to burn in the merchant area of Rome.
1290 King Edward I of England issued the Edict of Expulsion, banishing all Jews (numbering about 16,000) from England; this was Tisha B’Av on the Hebrew calendar, a day that commemorates many Jewish calamities.
1334 The bishop of Florence blessed the first foundation stone for the new campanile (bell tower) of the Florence Cathedral, designed by the artist Giotto di Bondone.
1389 Kingdoms of France and England agreed to the Truce of Leulinghem, inaugurating a 13 year peace; the longest period of sustained peace during the Hundred Years War.
1656 Polish-Lithuanian forces clashed with Sweden and its Brandenburg allies in the start of the Battle of Warsaw.
1670 Giovanni Bononcini, Italian composer, was born (d. 1747).
1811 William Makepeace Thackeray, English author, was born (d. 1863).
1848 W. G. Grace, English cricketer, was born (d. 1915).
1855 New Zealand’s first postage stamps were issued. The adhesive, non-perforated stamps for the prepayment of postage were the famous ‘Chalon Head’ design that portrayed a full-face likeness of Queen Victoria in her coronation robes.
1857 Louis Faidherbe, French governor of Senegal, arrived to relieve French forces at Kayes, effectively ending El Hajj Umar Tall’s war against the French.
1862 First ascent of Dent Blanche, one of the highest summits in the Swiss Alps.
1863 American Civil War: Battle of Fort Wagner/Morris Island – the first formal African American military unit, the 54th Massachusetts Volunteer Infantry, failed in their assault on Confederate-held Battery Wagner.
1867 Margaret Brown, American activist, philanthropist, and RMS Titanic passenger, was born (d. 1932).
1887 Vidkun Quisling, Norwegian soldier, politician and convicted traitor, was born (d. 1945).
1908 Mildred Lisette Norman, American peace activist, earned the moniker Peace Pilgrim, was born (d. 1981).
1909 Andrei Gromyko, Soviet diplomat and President, was born (d. 1989).
1909 – Mohammed Daoud Khan, President of Afghanistan, was born (d. 1978).
1914 The U.S. Congress formed the Aviation Section, U.S. Signal Corps, giving definite status to aircraft within the U.S. Army for the first time.
1918 Nelson Mandela, President of South Africa, Nobel Peace Prize laureate, was born.
1923 Jerome H. Lemelson, American inventor, was born (d. 1997).
1925 Adolf Hitler published his personal manifesto Mein Kampf.
1936 In Spanish Morocco, military rebels attempted a coup d’état against the legitimacy of the Spanish government, this led to the Spanish Civil War.
1937 Hunter S. Thompson, American journalist and author, was born (d. 2005).
1942 Bobby Susser, American songwriter and record producer, was born.
1942 World War II: the Germans test flew the Messerschmitt Me-262 using only its jet engines for the first time.
1944 World War II: Hideki Tojo resigned as Prime Minister of Japan due to numerous setbacks in the war effort.
1950 Glenn Hughes, American singer (Village People), was born (d. 2001).
1957 Sir Nick Faldo, English golfer, was born.
1963 Martín Torrijos Espino, former President of Panama, was born.
1965 Russian satellite Zond 3 launched.
1966 Gemini 10 launched.
1968 The Intel Corporation was founded in Santa Clara, California.
1971 Sarah McLeod, New Zealand actress, was born.
1976 Nadia Comăneci became the first person in Olympic Games history to score a perfect 10 in gymnastics at the 1976 Summer Olympics.
1982 268 campesinos were slain in the Plan de Sánchez massacre in Ríos Montt’s Guatemala.
1984 McDonald’s massacre James Oliver Huberty opened fire, killing 21 people and injuring 19 others before being shot dead by police.
1984 Beverly Lynn Burns became first female Boeing 747 airline captain.
1986 A tornado was broadcast live on KARE television when the station’s helicopter pilot made a chance encounter.
1992 The ten victims of the La Cantuta massacre disappeared from their university in Lima.
1994 The bombing of the Asociación Mutual Israelita Argentina (Argentinian Jewish Communal Center) in Buenos Aires killed 85 people (mostly Jewish) and injures 300.
1995 The Soufriere Hills volcano erupted. Over the course of several years, it devastates the island, destroying the capital and forcing most of the population to flee.
1996 Storms provoked severe flooding on the Saguenay River.
1996 Battle of Mullaitivu. The Liberation Tigers of Tamil Eelam captured the Sri Lanka Army’s base, killing over 1200 Army soldiers.
Sourced from NZ History Online & Wikipedia