National and Labour are struggling to find credible plans to rebuild our economy. Both parties are currently engaged in a bidding war to bribe voters in the run-up to the election. Temporary additional public spending to provide relief to the unemployed and liquidity to small businesses is good. But expectations are building that taxes will rise in the future, depressing investment and job creation in the present. To avoid this trap, cuts to ongoing wasteful government schemes that promote privilege should be enacted. These include:
- subsidies to Kiwi Saver contributions
- free tuition fees and interest free loans to students from wealthy families
- winter heating payments to high income earners
- corporate welfare to businesses
- accelerated depreciation tax allowances to the forestry, farming and bloodstock industries
- the provincial growth (i.e., slush) fund
Cutting these transfers alone adds up to more than $30 billion in savings over ten years. That forms the backbone of a plan to greatly reduce our exploding public debt, without increasing taxes. Inequality would also fall as the wealthy receive less public support.