A few ideas that i've been mulling over, strategies that don't require projected growth or long term investment.
1. Eliminate GST, Raise Income tax.
Positive: A person spending most (if not all) of their income will see a reduction in the costs required to live and have more disposable income to spend or save, a person who earns $500 a week and spends it all on rent, groceries, fuel etc will find it easier to purchase what they need, the raise in income tax will have a heavier impact on people who are able to save much of their income.
Negative: Big earners who spend less of what they earn will have less money, it will be harder for them to accumulate savings as fast - This could have a negative impact on investment.
2. Raise wages proportionately to a business tax cut.
Positive: Workers earn more money, businesses take no losses.
Negative?: The government will earn less tax revenue and will have to make cuts (which to me is a positive anyway)
3. Cut funding for services that benefit only a small portion of the population, lower taxes proportionately.
Positive: People who are funding these niche services (for example here, Kiwirail, an SOE that services a half of a percent of the population and costs hundreds of millions to run in taxes.) The taxpayers won't be carrying the burden of the few.
Negative: People who use these services will have to pay more for them.
4. Change environment taxes, offer investment incentives to businesses
Positive: Rather than forcing businesses to pay an environment or carbon tax of some kind, give them the option of either paying the tax or reinvesting that same amount back into their business to lower their footprint, lowering the footprint will result in the subsequent years taxes being lower than the previous year, the next years smaller amount can also be reinvested or paid as tax.
Negative?: Government collects less revenue and will have to cut services (again a good thing as far as I'm concerned).
1. Eliminate GST, Raise Income tax.
Positive: A person spending most (if not all) of their income will see a reduction in the costs required to live and have more disposable income to spend or save, a person who earns $500 a week and spends it all on rent, groceries, fuel etc will find it easier to purchase what they need, the raise in income tax will have a heavier impact on people who are able to save much of their income.
Negative: Big earners who spend less of what they earn will have less money, it will be harder for them to accumulate savings as fast - This could have a negative impact on investment.
2. Raise wages proportionately to a business tax cut.
Positive: Workers earn more money, businesses take no losses.
Negative?: The government will earn less tax revenue and will have to make cuts (which to me is a positive anyway)
3. Cut funding for services that benefit only a small portion of the population, lower taxes proportionately.
Positive: People who are funding these niche services (for example here, Kiwirail, an SOE that services a half of a percent of the population and costs hundreds of millions to run in taxes.) The taxpayers won't be carrying the burden of the few.
Negative: People who use these services will have to pay more for them.
4. Change environment taxes, offer investment incentives to businesses
Positive: Rather than forcing businesses to pay an environment or carbon tax of some kind, give them the option of either paying the tax or reinvesting that same amount back into their business to lower their footprint, lowering the footprint will result in the subsequent years taxes being lower than the previous year, the next years smaller amount can also be reinvested or paid as tax.
Negative?: Government collects less revenue and will have to cut services (again a good thing as far as I'm concerned).
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