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Motorcycling and An Obsessive Compulsive Personality Disorder (OCPD)

GST and ACC

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4 Comments
by
BuckBuck#1
, 2nd December 2009 at 11:48 (1236 Views)
In my blogg I commented:

ACC is but a thorn in the side of progress. Of itself, philosophically it is a nappy, in the real world it is a crutch. There are better ways of providing compensation, it is up to the people of the day, not yesterday, to create a system.
How that is done is a task entrusted to many governments of the day over many years.

Am I correct in saying GST was introduced after ACC?

So since the introduction of GST governments of the day have run with it and, as a general comment the people have adjusted to it.

I applaud dpex's suggestion that ACC levy's be scrapped and that this be incorporated in the GST and apportioned to fund ACC.

Quote Originally Posted by dpex View Post
…Abridged….there is an elegantly simple solution to the entire ACC debacle. That is; raise GST by an amount (I believe 15% is still easily calculable) and use the 2.5% increase to fund all ACC.
The general theme raised here is an excellent 'catch all' it places the responsibility back on the political parties to look at 'how best to manage' what is good for the country.

I remarked that philosohically ACC is a "nappy", it only addresses a part and not the whole.

I remarked that ACC in the real world is a "crutch", it is being seen to be a very good thing to have, but of itself it is full of inequities and therefore cannot 'walk correctly'.


Conclusion
There appears to be an effective tax collection facility with GST it came after ACC, and both GST and ACC could work notwithstanding the fact that it will be one political football. I think that this has a lot of commonsense and merit.

In its present 'system' format ACC is but a thorn in the side of progress. It can be improved upon and be more equitable.

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Comments

  1. p.dath's Avatar
    ACC and GST are for two totally different purposes.

    I would encourage you to read the Woodhouse report, the foundation of ACC. And if you can't be bothered reading the research and all the reasons why it was done the way it is, at least read section 6.
    http://www.library.auckland.ac.nz/data/woodhouse/
  2. BuckBuck#1's Avatar
    Thanks for the comment. I looked at PartVI.

    Essentially my logic was based on the mechanism underwhich the ACC can be paid, and seeing as GST came into being after ACC, then the GST system would appear to present a good vehicle underwhich funding of ACC could occur.

    The procedures underwhich this would occur are not addressed of course. But rather the fact that a system, GST, was introduced, then a more equitable method of funding ACC could therefore result.
  3. p.dath's Avatar
    I would be happy to consider collecting the ACC levy at the same time as GST - just don't call it GST. I fear that it you combine them both then money will be siphoned off for the wrong purposes (look at the roading tax - collected in the general taxation account and not fully used on roading as a result).

    The biggest question in my mind would be would this new collection method support the Woodhouse principle of everyone contributing in the community.

    For example, I can see people changing to doing purchasing via a company, so they can claim back their GST.


    Personally, I am still more in favour of simply increasing the existing ACC levy on Petrol. The system already exists. It works well. There would be no additional collection costs. It's hard to invent systems that avoid paying it.
  4. BuckBuck#1's Avatar
    Your comment..."Personally, I am still more in favour of simply increasing the existing ACC levy on Petrol. The system already exists. It works well. There would be no additional collection costs. It's hard to invent systems that avoid paying it."

    Agreed. There needs to be a universal 'transparent' method. At the end of the day: you're driving a 22 wheeler, a 250, a bicycle, or skiing down the slopes or kicking a ball. You're 8 or 80yrs old. Universally there needs to be a 'cover all'. How that is achieved is the challenge ahead. I do not think it is too difficult from a 'systems' perspective. From a socialogical angle however things will be different. Bureaucracy and Humanity, I am sure we can all sit and present many scenarios, the challenge of course is to try and find middle ground.

    Good healthy debate and discussion is always welcome.