I am constantly criticised for not putting out conclusions for policy. So I thought with an election coming up, I’d put down my personal election platform … this should make obvious why no-one would vote for me, not even my mother 😉
- Complete removal of current tax system – except externality taxes
- A flat rate of GST, with the rate determined by an independent body subject to the constraint that “the books must be balanced over a 10 year period”.
- Direct transfers to help compensate losers from the change in the tax system (GST will transfer from current savers to borrowers – a one off tax on the debt stock which is then given to savers will help compensate for this)
- A land tax, set at a rate that will provide for essential infrastructure that is made by government on public good grounds (or a similar argument).
- Public research into the appropriate level of externality taxes, so they can be set at their “right” level.
- Complete removal of current benefits and superannuation
- Introduction of a guarenteed minimum income (GMI) – so that each person over the age of 18 receives a minimum amount of money
- The size of the GMI to be set by referendum within the first year.
- GMI is inflation adjusted – and each election the level is again voted on.
- For people under 18 there is a smaller payment – the age tranch nature of this payment will be determined as a proportion of the total GMI, and set according to any belief in “positive spillovers from family formation”.
- From 16 it is possible to get the full GMI under special circumstances.
- GMI to not be work tested – however, there will be a referendum on work/education testing in the first year.
- Funding for people with special needs beyond the GMI to be instituted, based on suggested targeting by departments
- Look at the consistency of the legal system, rely on expertise of lawyers and judges.
- Change drug policy to focus on it as a health issue rather than a criminal issue.
- Legalise all drugs, but place externality taxes on them – use this to fund treatment.
- Focus on prevention and education.
- Outside of this, society has shown it WANTS to pay for an expensive health care system and values this – so just make sure that it is funded, and the costs are transparent.
- We have a GMI now
- Remove all “gold card” benefits and the such
- Remove all subsidises on Kiwisaver.
- Changes to tax policy will incentivise savings appropriately.
- Reintroduce a market rate of interest on student loans (including on current loans) – with the ultimate goal of moving them to the private sector
- Work to integrate skills training more closely with skill shortages
Research and development
- Base any funding on estimated spillovers/externalities – generally limit public funding where possible.
- Significantly increase funding for commerce commission
- Ask for a set of industries where competition policy is an issue and give them free reign to investigate
- Change their brief to take into account the impact on both the welfare of businesses and consumers – not just changes in consumers welfare
Reserve Bank Act
- Change the target of “1-3% over the medium term” to “2% over the medium term”.
- Define medium term as 5 years – have the Bank openly state why they have deviated from target when they have (will always be due to a price level shift, which they need to look through – think the open discussion of it would help transparency and communication with the public)
- Look into operational separation between monetary policy and financial stability goals of bank – along with a separate contract for any specifed financial stability aim.
- Increase co-ordination in forecasting and openess regarding policy debate in private: Treasury, independent tax body, and the RBNZ (in both its financial stability and monetary policy roles).