Treasury prompting debate on key issues

In a recent NZ Herald story

More to be done on tax, education, says Treasury secretary - Business - NZ Herald News

Treasury Secretary, John Whitehead, championed the cause of reforms in tax and education to spur improved performance. It's good to see Treasury again prompting debate about longer term challenges facing the country.

Which government takes the biggest bite out of an income of $100,000?

LOOMING debt and demographic crises have many governments searching for new revenue sources. Some governments have less room to raise taxes than others. An analysis by KPMG, a consultancy, compares effective tax rates—net of offsets—and social-security contribution rates across 81 countries. Unsurprisingly, European countries top the list. As a result austerity measures across much of Europe must focus on cutting spending. At just under 40%, the total burden of taxation in India is quite high relative to that in China. But a thin social safety net means that China’s residents must save a high share of their disposable income as insurance, offsetting some of the growth effect of low tax rates. For low rates, nothing beats living in a banking centre, a petro-state, or (naturally) a tax haven.

Tobacco tax increase urged in the Year of the Lung

A good story in scoop regarding the need to raise taxes on tobacco.  Scoop: Tobacco tax increase urged in the Year of the Lung .  It's not often that you get a policy decision which can be both popular, improve the health of citizens and boost the government's tax revenues.

Step Change Needed in Economic Performance

New Zealand needs a step change in economic performance if it is to raise the living standards of all its people and to afford the increasingly expensive healthcare treatments now available. In addition we also have a large number of baby-boomers coming through the system to retirement during the next two decades.

Productivity growth, adoption of hi-tech production methods and lower income tax rates are all part of the policy mix required. We also need to agree and implement a NZ Broadband Strategy and build links between our education system, job training and the global marketplace in a way that encourages kiwi companies to remain headquartered here and to be smart about retention of Intellectual Property rights here in New Zealand.

Whichever parties are involved in forming the next government should probably consider convening a NZ Summit of the type David Lange convened after the 1984 election. We need to debate and agree some key national goals and then set about achieving them.