Crippling the state with tax cuts for the rich
$1.2b hike in Budget deficit
The Budget deficit is running $1.2 billion worse than forecast as tax revenue continues to lag.
From 2008 Treasury claimed we would get 1.5% growth, 2.3% growth and then 3.2% growth. We actually got -1.1% growth, -.4% growth and -.1% growth. Treasury have been out by as much as 3.1% of GDP as little as last year. The reason Treasury keep getting it wrong is because the free market meltdown is beyond their ideological paradigm.
Treasury and this Government are confronted by economic conditions created by the neoliberal deregulation they so slavishly worship, meaning neither have the intellectual capacity to look outside their free market paradigm. What we are getting from Government is a mish mash of austerity cut backs resting on future growth predictions that make Hoover's constant claim of 'prosperity just around the corner' in the wake of the 1929 stock market collapse, look pessimistic.
The tax cuts for the wealthy that this Government has borrowed for can't be afforded when we have to sell our assets off just to pay for education and health. We are amputating the ability to raise revenue so the wealthy can still afford their holidays in the South of France. John Key wants to defy economic gravity by wanting trickle up rather than trickle down.
How very magnanimous of us. That the sleepy hobbits have been so sucked in hook line and sinker into allowing the rich to profit from the rest of us while our public services are worn down should be a national disgrace.
It is not.
I find it an abomination that 150 of the richest families could gain $7 billion in a year while over 200 000 NZ children live in poverty, this Governments insistence at borrowing for tax cuts for the rich while forcing the rest of NZ into an austerity straightjacket is governance for the rich, by the rich, in the interests of the rich.