Spin or a lie - you decide.

Just popping back to this one. I had hoped that after a whole page of stuff feedback about this there would be some more information put out by the Govt to justify it's potential caught with a good spin on.

"Thinking about a move to Australia? Think again, warns Prime Minister Helen Clark.
Because across the ditch you'll run into higher taxes, higher property prices, higher unemployment, plus compulsory medicare and superannuation, she said in Palmerston North yesterday. "

See stuff : http://www.stuff.co.nz/stuff/0,2106,3597243a10,00.html

I also borrowed an official avg household income figure of $65,5209 from here.
http://www.stuff.co.nz/stuff/0,2106,3603795a6160,00.html

I postulated that as the tax rates had different graduation points and rates, I would need to calculate both the tax on the income as if was earned by a single person as well as splitting the income between two people. To give a fair comparison for the average NZ household income.

Australian tax rates from here were used:
http://www.ato.gov.au/individuals/content.asp?doc=/content/12333.htm

And NZ rates are from here:
http://www.ird.govt.nz/income-tax-individual/itaxsalaryandwage-incometaxrates.html

As an Individual an Australian pays $15,516 as tax on a gross income of $65,520.
An Individual in NZ pays $16,822.80 as tax on a gross income of $65,520.

The Aussie pays $1,306.80 less tax on an income $65,520

As an Individual an Australian pays $5,688 as tax on a gross income of $32,760.
An Individual in NZ pays $6,388.20 as tax on a gross income of $32,760.

The Aussies pays $698 less tax on an income of $32,760.

So that was the averages disposed off, how about the lower incomes.

Lets say Joe earns $18,000 a year.
In Aussie the tax is $1,800
In NZ the tax is a whopping $3,510

The Aussie is paying $1,710 less tax on an income of $18,000.
In NZ you pay almost twice as much tax when you earn $18,000. a year. It's just my opinion but I think this a very bad look for a Govt that claims it represents the lower to average income working people of NZ.


So I also looked at a reasonably large salary.
Lets say Joe earns $100,000
Aussie: $30,550
Kiwi: $30,270

The Kiwi pays $280 less here on an income of $100,000.

So the cross over point in the progressive models used is somewhere close below $100,000.

A quick look at massive income of $280,000
Aussie: $115,150
Kiwi: $100,470

Kiwi pays $14,680 less tax on an income of $280,000. Once again it's just my opinion but I think this a very bad look for a Govt that claims it represents lower to average income working people of NZ.

So the truth of the matter would appear to be, that the average Kiwi is better off in Aussie tax wise. Lower income earners are a lot better off in Australia tax wise and high income earners pay more tax in Australia.

I wonder was she using a large dollop of spin or was she thinking of her own income when she made the statement. Perhaps she thought she was addressing the business round table.

Why you ask

You may be wondering why I hold the Labour Govt in such low regard.

Well to sum it up: I have always paid my tax, never claimed any benefits, never held a community services card, never been a burden on the state in any way. I have negotiated complex business tax compliance which in turn create complex person tax compliance. I have children who are also no burden on the state. I have private health insurance so I'm also doing my bit to reduce public waiting lists, should I need an operation.

Now with working for families my family sits in the demographic that has all the costs of running a family and has earnings that would qualify it for a benefit, if it had more children.
So income wise we are classified as rich and taxed accordingly, benefit wise we are not rich but have chosen not to have lots of children.

You are reading the rantings of an over taxed worker fed up with being the abused demographic of a Labour Govt.

And why do I ride to work ? It saves me a fortune on gas and parking, it's fun and it keeps me fit - you should try it.

Are we really this stupid.

From Stuff:
PM opens door for Parker's return
http://www.stuff.co.nz/stuff/0,2106,3618069a6160,00.html

This is classic Helen speak "If this set of allegations doesn't stack up, then it would not be natural justice to deny Mr Parker a place."

Allegations - what allegations ?

David Parker admitted it.

Well I guess we need to wait for the companies office to reach their decision.

It's not even spin, it's just a fob off.

From Stuff
http://www.stuff.co.nz/stuff/0,2106,3620301a6160,00.html
Minister unconcerned about Auckland traffic at world cup time

Mr Williamson said a June 2005 Treasury paper examined whether expenditure on roads was sufficient and concluded substantial road infrastructure "underinvestment" was occurring.
He said Treasury had noted New Zealand seemed to be passing up road investments that would provide a high return.

But Mr Hodgson said since that paper was produced, the Government had increased investment in roading.

So where are the facts, the examples, the justification for this statement. And probably more importantly, why is Stuff not asking these questions ?

Cycle commuting

Ride to work this morning: 11.13K's, Time: 24:53 Avg: 27.74, Max: 38.9
Ride home: 11.01 K's, Time: 25:49, Avg: 26.50, Max: 38.0

Just as a point of interest, driving the car to work in morning traffic also takes me about 25 minutes.

Free money

From Labour's web site.
http://www.labour.org.nz/news/latest_labour_news/news-060329/index.html

The thing that riles me most about this is that Labour seem to have focused the issues of education entirely on the popular election subject of student loans.

All issues related to education since the 'election bribe season' have been entirely diverted to this offer of 'free money'.

OK, the loans are now interest free - great well done. Now before the next election bribe, how about some fixing of education as promised in 1999.

Perhaps we have Winston to thank again.

see: http://www.stuff.co.nz/stuff/0,2106,3620090a11,00.html

Idiot.

When the media goes silent

You know something is up, or they don't want to talk about something.

I wonder which way it is.

Maori Party gets in on the ACT
see: http://www.stuff.co.nz/stuff/0,2106,3616877a6160,00.html

Affirmative action.

I was wondering if affirmative action as supported in Auckland University should be applied to Parliament, and it would appear so.

Maori MPs 'snubbed' as stand-ins for minister
see: http://www.stuff.co.nz/stuff/0,2106,3620066a6160,00.html

Hey I don't agree with affirmative action but since we have it in our Bill Of Rights and are already using it... why not.

Cycle commuting

If there is any day I regularly pass on cycling to work it's Monday. Today I decided it was a great way to blow the cobwebs out after having had a lazy weekend and going to a wicked 40th on Saturday night. Great ride in, no wind and nicely cool. Ride time 26:14. Ride home was into a gentle southerly which added some workout potential. 11.2K's - 25:51. Avg 26.61, Max 41.3 Odo 1,242.

Labour Govt is not accountable - but we all know this.

From Rodney Hide's blog.
http://www.rodneyhide.com/index.php/weblog/comments/another_day_in_the_house/

But the scary thing is - this just goes on every day and we normally have no idea.

Spin - what spin !

From Labour's web site.
http://www.labour.org.nz/news/latest_labour_news/news-060322/index.html

If you replace every 'giving surgery commitments' or 'with a commitment' in this article to 'added to a waiting list'. It suddenly makes sense.

Who writes this sloppy spin, and also (excluding people with no surgical commitment) who thinks this is good news. Our waiting list are growing and Labour's only solution is to recategorise the waiting list !

Investigate magazine - Doonegate

Something else I was reading today prompted me to have a look at the Investigate magazine story regarding Peter Doone and his downfall.

See: http://www.investigatemagazine.com/archives/2006/03/investigate_nov_2.html

Isn't this great, the allegation is that Ms Clark leaked false information to the media that resulted in a public perception of the Police Commissioner that was simply not true. Then that public perception was used to justify his position being untenable.

Labour's public hanging over the INCIS project is perhaps a way to paraphrase it.

It makes you wonder what other information in the media about INCIS was incorrect. Who leaked the stories and what was actually happening.

Thanks to CR513

Riding my bike to work this morning I was cut off by a driver changing lanes - with no indicator. (I was going hell out and tracking with the traffic through an intersection where lots of traffic changes lanes)

The driver of CR513 saw the situation I was in and made plenty of space for me. Much appreciated. Interestingly this is the same car that dropped Hon Trevor Mallard off at Karapoti to ride the Karapoti classic in Feb.

State housing tennants earning how much ???

From Stuff:
http://www.stuff.co.nz/stuff/0,2106,3603795a6160,00.html

The only logical assumption an new arrival in NZ would make about this is that the NZ Govt has lost the plot. Additionally you would have to assume the spin monkeys are hard at work with statements like:

Statistics New Zealand reported in June that the average annual gross income for a household was $65,520 a year.

After-tax incomes of $70,000 and $80,000 among those living in state houses were "not uncommon," Mr Heatley said.

So we report incomes as gross amounts and state house tenants income as net amounts.

The real picture is:

"Statistics New Zealand reported in June that the average annual net income for a household was $48,697 a year.

After-tax incomes of $70,000 and $80,000 among those living in state houses were "not uncommon," Mr Heatley said."

Makes cost savings associated with chopping 20 MPs out of the mix look like a waste of time when there is fish this big just sitting around waiting to be fried.

I would write a policy for this along the lines of 'Once a person's income is equal or greater than (2 x the qualifying income level) they are deemed to be no longer eligible for state housing assistance'.

At this time they should be made to choose to pay market rental for where they live or get out withing 90 days.

MP take first step to cut their own numbers.

Stuff carries the Story:
http://www.stuff.co.nz/stuff/0,2106,3604597a6160,00.html

I find in times like these we get to see who's a supporter of the people, who's a supporter of the process and who just supports themselves.

Apart from NZ First (seven MPs) other parties to support the first reading were National (48), and ACT (2) giving the bill 61.
Labour (50), the Greens (6) and United Future (3) were expected to vote against it.

Not a lot of surprises in this one. Now we just wait to see who stumps up in the final analysis.

Personally I also think the Greens view that reducing the numbers lowers the diversity, which is not necessarily a good thing. I would probably take the same approach as the Maori party on this one and abstain.

Update - 27/3/2006: Apparently the Maori party supported this bill, I guess stuff didn't care to tell us that when they printed the numbers because they only needed to count to 61.

Cycle commuting

Eventful ride to work this morning. Driven into by a car in Kilbirnie. Nice - Nice enough Lady, didn't see me but also wasn't indicating. Managed to stay on the bike as I fended myself off the front guard. She looked genuinely shocked at what she did and as I was uninjured I promptly rode away without confrontation. One more black cross for the super dayglo hi-viz cycling vest.

Ride time to work: 26:45. Home: 10.99 K's, Avg: 29.43, Max : 52.8 Time: 22:29.

Today is a day to celebrate

Yes it's a very important day today :-)

www.steakandbjday.com

The real Jobs machine.

CYF should be merged, says report
From Stuff: http://www.stuff.co.nz/stuff/0,2106,3599649a6160,00.html

The news as I see it.

The Govt vision of a central Govt agency moved a step closer to fulfillment today. Govt was delighted to hear that the report on the merger with CYF had given the 'expand Govt is good signal'.

Tax payers were jovial and applauded as they knew that the merger was being managed by a competent Minister. The Minister did say he was currently looking into what he described as 'a few gaps in the fabric of the CYF Dept'. 'There are a few things to get roped down tight but we will slap them into shape' he said as he ran off to look into what fellow MP's had called a mud fight in Parliament earlier in the day.

Phew the World is still turning.

From Stuff: http://www.stuff.co.nz/stuff/0,2106,3599745a6160,00.html

It's not often that I say this

From Stuff: http://www.stuff.co.nz/stuff/0,2106,3599733a6160,00.html

Well done Winston.

What ACC teaches us about Tax.

Tax is a big issue, people hate paying tax but it's essential. A Govt needs funds to govern. OK the obvious dross is out of the way now lets get down to it.

Left style Govt's believe that the more you earn the bigger the percentage of your earnings you should pay. Commonly called 'Graduated tax scales'. Right style Govt's believe that tax rates should be flat so that the more you earn the more you pay but the percentage is the same. Commonly called 'Flat tax rates'.

The Left view in a nut shell is the more you earn the more you can afford and the Right view is that you should not be punished for earning more.

ACC teaches us that Tax rates can be capped. Radical I know but consider this.

If I was paying income tax and had paid my tax up to an amount of say $100,000 @ say 30% I would be paying $30,000 a year. That's $30,000 a year more than someone who's not paying tax at all. The when you consider that someone in this country who's not paying tax probably receives at least $6,500 in benefits, I would have paid $36,500 more than that person.

So what justification is there for taxing any income over $100K at 30%, or perhaps 40%. There is none. By the time I have paid $36,500 more than the guy living next to me on a benefit surely I have contributed sufficiently to the Govt. When you consider that I'm also paying GST on anything I spend my 'after tax money on' I'm now contributing even more.

Think about it - why is it fair to keep taxing someone more and more because they earn more. Where is the incentive to earn more when the Govt takes a bigger slice (or even the same slice) of every dollar off you when you have already paid a significant amount.

MP's slip away to advise on transparency

From stuff: http://www.stuff.co.nz/stuff/0,2106,3598316a6160,00.html

I just love this. "No public notification was given of the five-day trip being made by some members of Parliament's finance and expenditure committee. "

OK - so we have Labour style advise on transparency - It's bad - don't do it.

Minister admits he knew of licence problems

From Stuff. http://www.stuff.co.nz/stuff/0,2106,3597223a6160,00.html

Oh really. Is it just me or is there a ground-hog-day thing going on here with Labour MP's.

I had no idea ... well maybe, kinda, sort of - OK yes.

I would like to know (because the exact details in this article are scant) did this Labour MP mislead Parliament or did he only mislead the Public. Did he really go directly to the PM and if so why did she not act ?

Cycling home

Interesting ride home. 11.2 K's Ride Time 22:21 (weird, same as the last blogged entry) Max 52.8 Avg 30.68. Northerly has eased during the day .

Buses - Why do they think that the moment they have their indicator on they have right of way ?

Ride to work this morning was grim into a hard Northerly, 28:35 !

Out of the mounts of Babes

Our oldest boy (8 - almost 9) made his way into the bedroom the other night. Woken by a bad dream apparently.

The interesting thing was that he was happily waking me up at 2:52 (am) to tell me that it was 2:52 and if you read the time backwards it's still 2:52.

Lovely, needed to know that @ 2:52.

Forget Aussie, PM Advises

From Stuff: http://www.stuff.co.nz/stuff/0,2106,3597243a10,00.html

In 1999 Dr. Cullen defended the Labour party proposed tax changes by telling the us that the proposed 39% tax rate was moderate compared to the top tax rate of 48% in the USA.

What he failed to mention was that that rate (48%) only kicked in when an individuals earnings were in excess of $400K USD. (IE: approx $604K NZD - over 10 times the amount where the top NZ rate kicks in)

So when Ms Clark claims 'Tax rates are higher in Australia' - perhaps she should back up her claim with some stats showing the real tax rates for each income bracket.

Perhaps a simple graph showing how much an Australian vs a New Zealander would take home using income brackets as used for the census forms. Information on minimum and average incomes. Additionally showing (on the same graphs) eligibility levels for NZ Community services cards would also help compare her assertion that compulsory medicare adds to the tax as well.

I'm sure her claims are complete and honest but I would like to see how she arrived at these statements.

Whangamata beach usage.

OPINION

I appeal to all New Zealands (who do not have allergic, moral, religious, cultural or motivational issues associated with harvesting and/or eating pippies or other shellfish) to make a 'when personally convenient' annual pilgrimage to Whangamata to gather pippies (or other shellfish) on the mad flats. Spreading our visits throughout the year (perhaps coordinating with you extended family) should help alleviate any unacceptable Environmental Impacts. The Conservation Minister has retained this land for all New Zealanders so I'm sure he has assessed the impact if we all use it.

We should all be proud of our Conservation Minister and congratulate him by enjoying this fine area he has saved for us all.

You may have trouble finding accommodation, this is temporary while MSD quickly manage the development of a 'School Camp' style accommodation facility.

Sale of trademe for $700 million. Govt claims a victory for NZ Business Confidence.

http://www.beehive.govt.nz/ViewDocument.aspx?DocumentID=25092

Excuse me....

A couple a cleaver guys made an good whack of money by selling the same software that plundered the Newspaper Classifieds - to a Newspaper. Well done.

Despite the Govt’s propaganda machine claiming it’s a victory for NZ Business confidence and the NZ Business environment it’s really just a victory for a couple of innovative NZ guys. One of the Business partners is a Tax Consultant. Interestingly he was was often quick to disagree with the Govt’s position on tax. It will be interesting to see if they reinvest their capital gains in NZ. Lets hope so. The other disturbing that about the Govt claim is that it follows a trend. That trend being that in the last few years recognition for the establishment of a successful Business has shifted from that Business to the Govt. Almost like the Govt really believes it is a Jobs Machine.

Update 9 Mar 2006: It took some time for me to confirm it, it took some days for the paper to print the details but it certainly appears there was no Ministry of Economic Development funding in this company. IE: Should not be claimed as a 'Jobs Machine' victory.

Environment Court ruling vs Chris Carter ( Conservation Minister )

From Stuff:
http://www.stuff.co.nz/stuff/0,2106,3596035a10,00.html


In my opinion this is slick move from Chris Carter. He has a win win in this in that he has actively managed the Iwi considerations and the Environment Court workload all at the same time.

His party has a razor gang sniffing around for places to cut some numbers and the Environment Court is bound to be ready for a little trimming anyway. Something for his Razor mates to do and some free heads to add to his personal motivation 'head count chart'.

My pick: By end of this year there will be a not insignificant headcount reduction in the Environment Court. Coastal development consent application levels will be down and the local Iwi will be enjoying their pippies.

Teachers & Unions - Why ?

One thing I could never understand is that Teachers all want to be part of a Union and get paid the same.

These are people who’s basic training acknowledges that their biggest challenge is to deliver the lesson to both the slower and the faster learners.
IE: People do not all have the same talents and abilities.

I guess our nations University qualification level speaks for how well this works in the Education system.

Wellington turned on a fine Northerly

(or was it a Norwester ?) this afternoon.

My ride home from work was particularly express. I commute as much as I can tolerate the Weather on a Specialized Hardrock A1 Comp FS (2002). By no means an elegant bike, barely justifying it's classification as a MTB. I cranked out my 11.2 K's in 22:21. Max 56.2 Avg 30.45 Odo 1,108 - I rode none of the optional hills, just going for a rapid wind assisted ride home. A good ride to post as a blog PB :-)

The commuter.

Out of the mouths of babes

We (the family) were in a restaurant the other day and the open/closed sign was set to open, showing 'Closed' to the inside of the restaurant.

My 6 year old boy said to me: 'Look Dad, the outside world is closed'

Priceless.

Only in Wellington

Well we (the family) lined up to see 'Les Arts Saute' tonight for the 5:00pm performance. At about 5:05 they announced that the performance was cancelled because the wind was too high. They said they would try again at 7:30. So we lined up again and at 7:55... you guessed it - cancelled.

BUT there was an upside, we were in the right place at the right time when some of the performers came out (in costume) to mingle with the disappointed crowd. Even got a picture of two performers with the kids.

One of them did say: Wellington is the only city in the world where they have had to cancel performances because the wind makes the dome unsafe.

NZ is a funny place some times

It's a funny country we live in. I open the paper this morning as I chowed down a bacon sandwich to read about how good life is in prison, how Winston Peters is upset that he was photographed at the races (yes his own portfolio) and Benson-Pope is outraged that his life can be invaded in such a way. Crikey you would think the guy was taking a quiet shower and people burst in on him repeatedly. I guess the sky is always blue in his world and these clouds of truth are not welcome.

Still having a govt that bases all of it's reactions to trouble on how said trouble might effect it's position in power, it's slim grip on power, is probably better because at least we know what to expect. Lies, more lies and cover ups.