American downgrade and what John Key has in common with the Tea Party
So the US have lost their cherished AAA rating.
No surprise there. Watching Communist China lecture Free Market America for the Milton Friedman dogma that passes as economic policy in the US must surely be one of the most entertaining ironies of all time.
Tea Party activists who put the mental back into fundamental held the planet to ransom just so the wealthiest 1% didn't have to pay a single extra cent in tax, and we can see the exact same blinded ideological policy with John Key. Just like the Tea Party crazies, Key and the National Party refuse to put the tax burden on those who can most afford it and rely on trickle down hogwash to by-pass any critical analysis of their greed masquerading as the 'spirit of enterprise'.
The venal corporate greed that created the 2008 crash was an injury, demanding the wealthy maintain their power while asking the rest to make sacrifice is the insult.
posted by Bomber @ 1:08 pm
4 comments
4 Comments:
"Trickle down economics" has been irrevocably proved to be a lie. Tax cuts for the rich is NOT stimulative for anyone except the rich.
That said, we have built for ourselves a SYSTEM that can't support our wants. Our tax revenues clearly does not cover the outgoing costs. Right now we are borrowing the difference. You do not need a degree in economics to now that this is unsustainable.
Grown ups (are there any left in Parliament?) need to have a frank, honest debate with NZers on what services we want the Govt to provide that we can actually afford from the tax revenue. We all know we have to live within our means, why do we believe the Government is any different? Oh, I know, because they can simply "print" the money. That worked out great for Zimbabwe, right?
Yeah, and Key just on Close Up spinning shit. Another hand job, no link up between the way low tax's have resulted in the bankrupting of the US State, and whether it makes sense for us to do the same here.
With the exception of Bernard Hickey, a bunch of cheerleaders misleading the proles in the hope they don't catch onto the final push of the Corporatocracy.
The whole tax system needs a huge shake up as the burden is falling squarely on the middle class to provide everything and subsidise busines.
Years past, the business tax rate was a lot higher and successive governments allowed certain items to be tax deductible for businesses. Now, corporate tax rates are low but the amount of items that can be claimes back is still high. The outcome is income tax is now subsidising corporate New Zealand.
The National Govenrment fixed things in the pst by removing tax deductible items from the middle class income tax regime and adding ways and means of dodging more tax by the corporate class, knowing fair well that everything the corporates bought would be leveraged to the hilt by the NZ taxpayer. They claimed everything they bought back on their tax by their very clever accountants. That is the trickle down economic theory.
It amazes me that Donkey and Blinglish claim they are the only true messiahs in the economic world, by steadfastly failing to see the benefits of a Capital Gains Tax the rest of the world has and the gullible kiwis believe them. The Capital Gains Tax is the only way the tax system can be levelled out and the corporates made to pay their fair share. Or a complete shake up and a 1% financila transaction tax with no deductions.
I hope kiwis wake up to the fact that our economy isn't booming and that borrowing 300 million each week is a sure way for a downgrade. The wealthy are where they are on the backs of the middle and lower classes of New Zealand. It's time they repaid the favour by paying their fair share.
The US Tea Party is probably the clearest indication what might happen here, should ACT attain around 10% or more of the Party Vote - and hold the balance of power.
It's a sobering prospect.
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