- Scrap Working for Families, more accurately Welfare for Families. Low incomes can be targeted much better via different mechanisms. Why a family earning $60k with one child requires $5k pa of taxpayer subsidies is beyond me. 2010 appropriations of $2.2b (Family Tax Credit) and $0.6b (In-work tax credit) = $2.8b.
- Scrap Kiwisaver member credit and kickstart. $1.1b.
- Scrap interest free student loans. Would reduce amount of loans plus increase revenue. Net increase of $2b.
- Sell Kiwirail. $300m pa reduction in subsidy.
These are the easy ones. Without much thought, the deficit will reduce by about $5b.
If the Government was really serious, benefits could be reformed into an insurance type scheme paid for by the employee and employer. Not only would this reduce the deficit, but employees would be far more engaged with their employment and plan for a life without employment. This would increase participation in life insurance, disability insurance and unemployment insurance. 50% reduction in unemployment benefits would result in $500m pa savings. The same can be done for health, education et al.
The government doesn't have to wipe or arse for us. We can provide for ourselves if we want. Health, education, unemployment and superannuation. All can be provided by individuals, instead of the government. The annual savings would be in the billions (>$10b if all options considered) and the increase in efficiency by introducing competition to these government monopolies would be immeasurable. The economy would be stronger. The populace freed from the cold embrace of the State.
I've just woken up from my dream and back to reality....
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