tax wedges

Simon Collins reports at NZ Herald:

A new book has found total tax rates on the incomes of rich New Zealanders are now the lowest in the developed world.

New Zealand’s top tax “wedge” of 33 per cent on incomes above $70,000 is lower than all 27 other high-income nations in the Organisation for Economic Co-operation and Development, after including social security and payroll taxes which do not exist in this country.

Rich New Zealanders also escape without paying any tax on capital gains that would be taxed in most other countries.

On the other hand, New Zealand has the world’s most comprehensive goods and services tax (GST), taxing 98 per cent of all potentially taxable consumer spending compared with a developed world average of 59 per cent.

New Zealand is one of only five high-income OECD nations that do not allow any exemptions for food – a key factor in our high food prices.

The book’s author, Professor Rob Salmond, a New Zealand-born political scientist at the University of Michigan, says New Zealand has a tax system of extremes.

I’m not sure I’d call the book new. I read it last year. It’s a good book with lots of interesting data.

At some stage I hope to have time to discuss it in more detail. I would make one point for now though. This is off memory though, but if I am wrong I am sure Rob Salmond will correct me.

The tax wedge includes social security and payroll taxes, and presumably this includes payroll taxes in Australia where the “tax” goes towards the individual’s retirement savings.

I believe there is a huge difference between taxes where your tax money goes to the Government to spend on whatever they decide, and between payroll deductions where the money is invested in your name, and still belongs to you.

UPDATE: Rob has clarified the OECD tax wedge does not include the superannuation deductions, which is good.

Incidentally I do support a capital gains tax. I believe the best tax system is broad based and low rates.

Fast food is not compulsory

Jessica Tasman-Jones reports at Stuff:

Health authorities are calling on the council to stop the spread of fast food outlets in some of Auckland’s poorest suburbs in an effort to fight obesity.

According to the Auckland Regional Public Heath Service (ARPHS), there are more fast food outlets and less grocers and supermarkets in poor neighbourhoods.

The opposite is true for Auckland’s more affluent suburbs.

According to the ARPHS submission to the draft Auckland Plan, around 70 per cent of the city’s homes are within 1km of a takeaway shop.

That climbs to at least 90 per cent in wards like Otara-Papatoetoe and Mangere-Otahuhu.

ARPHS says it wants to see council restrict new fast food outlets across Auckland while seeking ways to increase food outlets with healthy food like supermarkets and grocers.

Those evil fish and chip shops, chinese takeaways, subways, hell pizza outlets etc must be stopped. We must not allow people to choose for themselves what food to eat, and suffer the consequences of bad choices.

The diamond jubilee

Stuff reports:

The queen is now the second longest-serving monarch in British history after Queen Victoria, who reigned from 1837 to 1901.

During Elizabeth’s reign there have been 12 British prime ministers, 12 US presidents and six popes.

I believe NZ should become a republic, but I am also a big fan of QEII whose devotion to duty is without peer.

Incidentally she has had 14 New Zealand Prime Ministers, and by coincidence she has also had 14 Governor-Generals represent her.

Some facts from the diamond jubilee website:

  • Only Queen Victoria has served for longer – 63 years. It seems likely that record will be broken in 2015.
  • The Queen is the 40th monarch since William the Conqueror.
  • Both Tony Blair and David Cameron were born after the Queen ascended to the throne, and hence have had no other Sovereign.

Drugged Driving

Michelle Duff at Stuff reports:

Dreamy, clammy, drooling or overemotional – the tell-tale signs of a drugged driver have led to hundreds of people being netted since the new laws were introduced.

Figures released to The Dominion Post under the Official Information Act show 514 people appeared sufficiently out of it for police to perform a compulsory impairment test on them since the Land Transport Amendment Act was introduced in November 2009.

Of these, 455 struggled to walk nine steps and turn without wandering off the line – stopping, miscounting the number of steps, not understanding the instructions or having to use their arms for balance.

Under the law, a police officer who suspects a driver of being impaired can require the driver to carry out a compulsory impairment test. This measures co-ordination, physiological reactions and markers for drug impairment such as pupil dilation.

As well as requiring them to walk in a straight line, police must check the driver’s behaviour against a list of possible signs of drug use – including slurred or incoherent speech, dilated pupils, and flushed or clammy skin.

They might also be making jerky movements, drooling, scratching, or appear dreamy or anxious.

A driver who fails must undergo a blood test and can then be charged with driving while impaired, which carries similar penalties to those for drink-driving.

Of the 455 drivers who failed the impairment test since 2009, 429 tested positive for one or more drugs.

I was a long time advocate that the Police should check drivers not just for excess alcohol, but for drugs which impair driving ability. It is good to see that the law change has produced results. Driving while stoned is a very very stupid thing to do, as responses are so slowed.

Waitangi Day Pub Crawl in London

Kate Newton at Stuff reports:

A urinating Waitangi Day mob of “drunk Kiwis wreaking alcohol-fuelled havoc on the streets of London” has sparked a complaint to the New Zealand High Commission.

Not sure what they can do about it.

It’s a rite of passage for thousands of young Kiwis on their great OE. But this year’s annual Waitangi Day London pub crawl has sparked derision and disgust.

Kiwi Dylan Clements says up to 1500 drunken New Zealanders took to the streets on Saturday in a shameful display of debauchery.

He has filed a complaint with New Zealand High Commissioner Derek Leask, saying their antics brought “great shame” on New Zealand.

Mr Clements, 28, said he watched participants urinating and vomiting on famous religious landmarks, including Westminster Abbey and the historic Jewel Tower, and exposing themselves indecently on the street.

Others sculled alcohol on the Tube, intimidated Londoners and assaulted Korean tourists with snowballs during the marathon boozing session.

But kiwis who attended the annual event say everyone was in good spirits, generally well behaved and respectful of police and other Londoners.

The Waitangi Day pub crawl is a fun tradition. However vomiting on Westminster Abbey is a no no, as is exposing yourself. If they occurred, they sounds like isolated incidents. You can take part in a pub crawl, get very merry, but still not be so “wasted” that you do such stupid stuff.

On a website set up to promote the pub crawl, Clint Heine said he met police before the event and they were present on the day to keep an eye on things.

He said he had received feedback from police saying there had been a “few minor hiccups” with litter and public urination, but it was expected.

Yesterday, on the pub crawl’s Facebook page, participants said police had told them they were a “well-behaved bunch”.

It sounds like Mr Clements may be over-egging things.

Krystle Field said it was the first time she had truly celebrated Waitangi Day and was proud to take part.

“At home it is such a negative day full of politics, protesting and drama and is just seen as another public holiday to many. In London it makes us all patriotic and we celebrate by dressing up in kiwiana costumes,” the 26-year-old said.

Well said.

It is interesting that Mr Clements was complaining about the pub crawl on Facebook, even before it had happened.

The media have all reported this as a major story, based on one person’s complaint. What is interesting is that the UK media (you know where it actually occurred) have run no negative stories at all on it. So the Police had no problem with it. The local media have only had good stories on it. Is the fact one person complains, meritorious of massive headlines in NZ?

Some photos from the pub crawl are here and here. Some great costumes. Even more here.

Social Media explained

The next stages for the Republicans

Romney won Nevada easily with 48% of the vote. This is somewhat significant as conventional wisdom had been that he was having trouble getting out of the 30s, and hence when there is just one opponent left, they might beat him.

In the five primaries and caucuses to date Romney has averaged 41%, Gingrich 31%, Santorum 14% and Ron Paul 11%. Romney is estimated to have 97 delegates out of 131.  You need 1,144 to win.

The Maine caucuses are underway, but have only 24 delegates. Romney won then by 31% in 2008.

Colorado with 36 delegates is on the 7th. Romney won that by 42% in 2008 but the latest poll has him 14% ahead of Santorum. Minnesota with 37 delegates also on the 7th. Santorum is on 29%, Romney 27% and Gingrich 22% in latest polls there.

The third one on the 7th is Missouri. 36 delegates.

After that you have Arizona and Michigan on the 28th of February and Washington on 3rd of March. That is the last one before Super Tuesday on 6 March.

Arizona has Romney on 48% and Gingrich 24%. 29 delegates. Michigan has 30 delegates.Washington has 43.

Super Tuesday is not as big this year – down from 24 states to 10 states. However 437 delegates up for grabs. So you don’t need as much money as previously to stay in the race and buy advertising time.

 

Neither Gillard nor Rudd

It is becoming clear that Kevin Rudd will challenge Julia Gillard for the Labor Party leadership. The latest poll has him as Preferred PM by 57% to 35% for Gillard.

However I don’t think he will win. Too many in his caucus hate him, and going back to Rudd will just lead to more infighting.

Gillard though seems to be a walking corpse. Many Australians regard her a a liar and backstabber, and don’t even regard her Government as legitimate. Personally I think it is a pity, because as Labor PMs go I think she is better than Rudd and Keating.

Hence I think that Rudd will challenge Gillard, but the caucus will turn to a third choice to become Leader and Prime Minister.

Harawira praises Key

Well, this is surprising. The Herald reports:

Mr Harawira said he “hated to say it” but he admired Mr Key for choosing to be the “bigger man”.

“In my view he is to be respected, that in the face of opposition – some of it quite strident – he chooses to come back year after year.”

Key’s response is the right one, in my opinion also. The PM should be at Waitangi on Waitangi Day.

However I have been of the view for some time that we should have a New Zealand Day, as well as a Waitangi Day.

Poor Ed Miliband

The NZ Herald reports:

One is a hapless inventor from Wigan whose hare-brained schemes and anthropomorphic dog, Gromit, have made him one of the most cherished figures in British film.

The other is the leader of the British Labour Party. And unkind talk about their similarity has prompted complaints that one is tarnishing the other’s public image.

Senior figures at Aardman Animations will voice concern, at a status meeting this week, over the frequency with which their Oscar-winning, cheese-loving, animated hero is compared to Ed Miliband.

Oh dear, it is bad enough to be compared to Wallace, but to then have the creators of Wallace concerned that the comparisons damages Wallace is very damning.

In the latest YouGov poll 68% of respondents say Miliband is doing badly as Opposition Leader, and only 20% say he is doing well. Even amongst Labour voters, 49% say he is doing poorly.

Pakeha urged to be more generous

John Hartevelt at Stuff reports:

Race Relations Commissioner Joris de Bres criticised those Pakeha who still resisted moves to give “special treatment” to disadvantaged Maori, thousands of whom suffered inequality. 

“I still have a sense that there is a lack of generosity in some Pakeha attitudes to Maori and there is a lack of will to see measures taken that will help to remove that disadvantage and there is a lack of understanding of this notion that it is actually fair to deal specifically with people who are suffering unfairness.”

Mr de Bres said he received a “continuing thread of correspondence” against “anything that could be deemed to be a special measure or something that applies particularly to Maori or Pacific people”.

“Every time the issue comes up … then you start to get a level of resistance and resentment and objection.

“I understand where people are coming from when they object to it. All you can really do is continue to have the conversation because, unless you do something about it, the outcomes for everybody are going to be worse in the end.”

In a forthcoming report, Mr de Bres said he would note that 41 per cent of school children in Auckland and Northland were Pakeha. That showed that, if racial inequalities were not addressed, it would lead to negative social outcomes for everyone.

I have no problem with the Government spending money to try and improve employment, educational, health and law & order outcomes for Maori. It is in all of our interest, to have Maori New Zealanders achieve better outcomes.

That does not mean that every programme designed to achieve better outcomes is a good idea though. And it doesn’t mean that programmes have to be delivered purely on racial grounds (although some do). A programme that is effective at improving educational outcomes for low income families will benefit Maori, even if not specifically targeted at them.

If specific targeting does make a programme more effective, then I’m okay with that. But decisions should be based on proven effectiveness. And if they don’t work, then they should stop.

So Joris may have a point on a lack of generosity by some towards lifting outcomes for Maori, but maybe he could also express a view on the generosity of those who called Hekia Parata, Tariana Turia and Pita Sharples “niggers” at Waitangi yesterday. Because fairly or unfairly the actions of those extreme elements contribute significantly to a lack of “generosity” by many.

NZ land sales 2007 – 2011

I’ve had to do this over two graphs so one can see how miniscule the amount of land purchased by Chinese domiciled people or companies have been.

This strongly suggests to me that racism has been a significant factor in the opposition to the Crafar sales. There was nothing like this level of outcry when land was sold to people in Liechtenstein or Canada or the UK or Australia.

This is not to say all those against the Crafar sales were motivated by racism. Many opponents are genuinely against all foreign land purchases, but some opposition is clearly based on the race of the purchasers, or worse politicians playing to those sentiments.

A wing every 5.3 seconds

Stuff reports:

Competitive-eating champ Takeru Kobayashi conquered Philadelphia’s annual gustatory gorge-fest by eating 337 chicken wings in a half-hour before a crowd of nearly 20,000 at Wing Bowl XX. …

Kobayashi claimed a US$20,000 (NZ$23,922) cash prize for his victory. It was the six-time Nathan’s Hot Dog eating contest champ’s first time competing at Wing Bowl, though he consumed a cheesesteak in 24 seconds as part of an eating exhibition last year.

That is a truly incredible amount of wings in half an hour. Not even so much for the amount of chicken he would have eaten, which I estimate to be around 9.5 kgs, but also for the time it takes to get most of the chicken off the wing.

Not much mana in this

The NZ Herald reports:

Prime Minister John Key and fellow politicians were verbally abused by protesters during ugly scenes at Waitangi this morning.

Protester Wi Popata heckled prominent Maori MPs at Te Tii Marae, calling Dr Pita Sharples, Te Ururoa Flavell and Hekia Parata “John Key’s niggers.”

Wi Popata is Hone Harawira’s nephew, and was convicted of assaulting John Key in 2009.

It’s called a conscience

A profile in the HoS of NZ First MP Tracey Martin. I have no issue with Ms Martin and wish her well in Parliament. But one statement from her I take issue with:

Martin’s decision to enter politics came out of frustration with her local representation. “Our MP was Lockwood Smith, and a number of policies came in which I disagreed with: prostitution reform and the lowering of the drinking age. The community asked him to take a stand and he followed the party line.”

Lockwood did not follow the party line. There was no party line. Both those issues were conscience issues. Lockwood voted on those law changes on the basis of what he thought was best for New Zealand.

Far from Lockwood voting on the party line, he was one of a very small number of National MPs who voted for decriminalising solicitation.

In terms of voting as your community wishes, does that mean Ms Martin would vote to decriminalise cannabis if a poll showed the majority of her community supported it?

I prefer the wonderful quote from British MP Edmund Burke in 1774:

… it ought to be the happiness and glory of a representative to live in the strictest union, the closest correspondence, and the most unreserved communication with his constituents. Their wishes ought to have great weight with him; their opinion, high respect; their business, unremitted attention. It is his duty to sacrifice his repose, his pleasures, his satisfactions, to theirs; and above all, ever, and in all cases, to prefer their interest to his own. But his unbiased opinion, his mature judgment, his enlightened conscience, he ought not to sacrifice to you, to any man, or to any set of men living. These he does not derive from your pleasure; no, nor from the law and the constitution. They are a trust from Providence, for the abuse of which he is deeply answerable. Your representative owes you, not his industry only, but his judgment; and he betrays, instead of serving you, if he sacrifices it to your opinion.

I want MPs who will exercise their own judgement (even if it is a judgement I disagree with), than those who will just vote for what is popular.

Invite the neighbours

Cherie Howie at HoS reports:

Sex parties are attracting regular noise complaints from neighbours.

Auckland Council environmental control team manager Mervyn Chetty told the Herald on Sunday his officers were being called to noisy swinger parties by neighbours unaware of what was going on inside.

“They just hear loud music coming in from there but when the [noise control officers] get there and the door opens, it’s some weird swingers’ party. It’s happening a couple of times a month.”

Generally if I’m hosting a party that could be quite noisy, I’ll invite the neighbours to attend, as if they are at it, they won’t be trying to sleep complaining about it.

So that seems the obvious solution to those hosting sex and swinger parties – invite the neighbours along.

Could this have been prevented?

Stuff reports:

A judge has told a 42-year-old Nelson man with 41 previous driving convictions that it was only a matter of time before he injured or killed somebody.

Norman Mostyn Teece appeared in Nelson District Court for sentencing yesterday by Judge Tony Zohrab on a charge of dangerous driving causing death, and was sentenced to three years in prison. …

Judge Zohrab said a law change last year meant the maximum sentence he could impose had doubled from five to 10 years.

“It’s hard not to be sympathetic to the situation you find yourself in, but the sympathy is dulled or tempered because of your history.”

Teece had received 41 previous driving convictions in the period between 1986 and 2001, and since 2001 had had his driving licence suspended twice.

“You have a terrible prior history. You have placed members of the public in danger again and again.” Judge Zohrab said.

Judge Zohrab is right that it was only a matter of time before he killed someone. I think he is lucky to have got only three years jail. A case for manslaughter could be made, if you take into account his past history.

This got me thinking, is there any way different laws could have prevented this death, or minimised the chance of its happening.

I’d advocate two changes for such recidivist dangerous drivers.

The first is that after a certain number of offences, you face a lifetime ban from driving. I’m not sure how many offences that would be, but certainly less than 41.

I note even now he has only been suspended for five years, of which around half he will be in prison for anyway.

The second change is around penalties for driving while disqualified. We know certainty of being caught and certainty of sentence are deterrents. I would advocate that any driver who has been permanently disqualified from driving (I would hope we have less than 100 in total) is subject to pro-active checking by Police that they are not driving and that if they are caught driving while permanently disqualified they are automatically jailed with say a minimum three month sentence.

If they refuse to drive safely on the roads, then better they are in jail than they are allowed to carry on until they do kill someone, as Norman Teece did.

My Friday Herald column

There was a glitch in publishing my normal Friday column in the Herald on Friday, but for those interested it is up now. I note:

If National had received around 5,000 fewer party votes, or if National voters in Epsom and Ohariu had failed to vote for the ACT and United Future candidates respectively, then the conflict over treaty clauses in SOEs would be critical. …

Parliament resumes next week, so should have no shortage of things to write about then.

A Sevens brunch

Post Day One Sevens brunch for our group. Very good at soaking up the alcohol.

Day Two was great. I was convinced New Zealand would lose after their semi-final vs England, where they played awfully. And Fiji was very impressive in their semi-final.

But my God, what a final. I can’t recall seeing a better performance from the NZ Sevens team. Four tries in the first half. And it wasn’t that Fiji were playing awfully – more NZ was playing very very well. The Fijians got quite bad tempered as the game went on – I don’t think they are used to being thrashed.

So a great finish to a very fun tournament. The only downside for the girls is that the Ultimate Warrior never turned up again. One of them spent most of the day looking for him!

The Cuba Mall bucket fountain girls

Why book stores are dying

All other things being equal I prefer reading a book in bed, rather than a kindle.

But all other things are not equal.

I have been a long-term fan of the Magician series of books by Raymond E. Feist. I’m even lucky enough to be on a mailing list with the author, where you can discuss his works with him.

His 29th and penultimate book in what will be a 30 book collection (in 10 series) has just been published. It is not yet available in NZ bookstores. To be fair, we do often get it in our bookstores ahead of even the US bookstores.

As a hardcover, it will probably cost NZ45 or so when it is released here.

I could order the book off Amazon to be home delivered. But the book is not available for delivery until 13 March 2012.  Cost with delivery would be around US$28.

But I managed to buy a Kindle version for US$10 last week, and am already halfway through it.

I love having a physical book collection, but I can see more and more of my future purchases being for my Kindle (technically Kindle on iPad).

 

Such generosity

Jamie Morton at NZ Herald reports:

The European family of a little girl raped in a Turangi campground have made a “heart warming” and “remarkable” gesture to New Zealand – and despite the horror ordeal they plan to come back.

The brutal attack on the 5-year-old on December 21 – which took place as she was sleeping alongside her little brother in a caravan at Club Habitat – drew an outpouring of both national shame and support, leaving the family overwhelmed with messages of support and more than $62,000 in donations.

It also stirred a wave of fury toward the youth responsible – a Turangi 16-year-old who will be sentenced in Rotorua this month.

Yesterday, the girl’s family re-iterated they bore no grudge against New Zealand, and announced they had donated $20,000 towards four organisations.

The money will help buy paediatric surgical instruments and items for Waikato Hospital’s Waikids Ward 26, support protection agency ECPAT Child Alert NZ Ltd and Victim Support Hamilton, and will go toward a new children’s playground for the Turangi community, who gave the family $13,000 in donations.

That is staggering generosity, when you consider what they have gone through.

There will be a lot of interest in the sentencing later this month.