Reds under the beds!

When I read in the NZ Herald that John Key has accused the Government of communism, I thought it might be a bit over the top.

But upon reflection I’ve decided it a damn fair call – when you consider communism in the economic not the political sense.

The communist economies have everyone paid by the state and basically for example caretakers don’t get paid much less than lawyers or doctors. Everyone is equal comrade.

Well if you read the NZ Herald story, you will find that Labour is now redistrbuting wealth so much that a family on $60,000 income only get to keep $2,376 of the $22,000 income difference between them and a family on $38,000. Yep almost a 90% effectuve tax rate for middle income families.

I have no problems with a Government providing income support to people as a safety net so they can eat, have shelter, education and health care etc. Of course we should.

But Labour has gone miles beyond this. They now take money off a single person earning $30,000 and give it to a family on $100,000 if they have enough kids. Families on $40,000 with two kids don’t now pay a cent of tax – they are now effectively state beneficiaries. The changes made by Labour go beyond helping families in need to income redistribution on an unprecedented scale.

Just think about the incentives now in place. You might be in your job earning $38,000. Over the next five years you work your guts out, you do heaps of unpaid over-time, and you get three promotions and end up on $60,000. However your take home pay hardly changes at all – you get only $10 a day more after five years and three promotions.

Or say your partner is not working and you are on $38,000. Your partner gets offered a job for $22,000. Normally you would jumpt at the chance. But then you work out the $10 a day this new job will bring in won’t even cover his or her transport costs every day, so why bother.

As more and more New Zealanders become aware of the new reality, there will be outrage. Sure one has always had the odd high abatement rate for say people going from a benefit to part-time work, but never has it been over such a large income range.