
Originally Posted by
Ocean1
No, I suggested that the highest value in real terms that a government can acquire is to tax every income at a certain level, supposed to be around 17%. More than that is counterproductive in terms of buying power in that economy, for that government. Taxing above this level is vote-buying behaviour, pure and simple, nothing to do with financial prudence.
WHat you DO with the revenue is the subject of a debate about the above compromise.
Sounds good Ocean, can you show me an example of an economy taxing at this level and still providing equality of opportunity including access to health care and education? Sanx cites Ireland as a possible example but I'm not sure this would work for NZ.
I admit don't know much about Ireland's economics but I understand they have beneifited enormously from EEC subsidies and the reason they are currently popular with investors is that manufacturing in Ireland gives you instant access to the enormous EEC market. Presumably if they are taxing less than the other EEC member states they are effectively cheating the system (level playing field an' all that). The fact that multi-nationals are prepared to exploit that for profit really isn't that surprising.
Also, should NZ cut its tax rates, (and it would take a substantial cut to make any material difference to my life style) what's going to happen to inflation and why is it that the political right only considiers Government spending to be inflationary?
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