NZ’s “Working for families” benefits are entrenching low wages and poverty

A short article, from the Auckland Herald newspaper’s NZHerald website today, sums things up nicely (regarding the recently annouced, annual budget).

One point it FAILS to make though, is that as single, childless people DO NOT get any “Working for families tax credits” ever, it means that effectively it’s the single workers (including those on the lowest incomes) that are helping to subsidise those in society who choose to have a family larger than they can afford, on the wages that they earn.

The answer is to put a total stop to Working for families tax credits, but at the same time, greatly increase wages, especially for the lowest paid. This could be “revenue neutral” as the govt wouldn’t need to tax folks SO much, in order to be able to hand back out from the tax-take, to those families currently struggling with low wages. Indeed there’d be savings, because just think of all the tax and welfare workers checking and processing Working for families tax credit application forms and updating them etc.

It’s frustrating to think that, in New Zealand, many single people are left feeling that their lives are as good as over, because whatever they try to do, the government will ensure they work for minimum wages, yet get taxed up the wazoo because they have the misfortune of being single and child-less. (If you’re not in the building trade with your LBP papers) then there are precious few opportunities for getting better paid work or for getting security of tenure over a place to live (and NO I’m not necessarily talking about buying a house under the current system, so that owners can “add value to your investment” (ie to make a tax-free profit”. )

Options such as the idea previously promulgated by me, elsewhere on this ‘blog, known as “Community Crofting” are simply totally un-available to all Kiwis (with the possible exception of a percentage of Maori people who have some opportunities to access cheaper housing options on tribal owned land, through their local iwi.

Here is a link to the NZHerald article.


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