Blog description.

Accentuating the Liberal in Classical Liberal: Advocating Ascendency of the Individual & a Politick & Literature to Fight the Rise & Rise of the Tax Surveillance State. 'Illigitum non carborundum'.

Liberty and freedom are two proud words that have been executed from the political lexicon: they were frog marched and stood before a wall of blank minds, then forcibly blindfolded, and shot, with the whimpering staccato of ‘equality’ and ‘fairness’ resounding over and over. And not only did this atrocity go unreported by journalists in the mainstream media, they were in the firing squad.

The premise of this blog is simple: the Soviets thought they had equality, and welfare from cradle to grave, until the illusory free lunch of redistribution took its inevitable course, and cost them everything they had. First to go was their privacy, after that their freedom, then on being ground down to an equality of poverty only, for many of them their lives as they tried to escape a life behind the Iron Curtain. In the state-enforced common good, was found only slavery to the prison of each other's mind; instead of the caring state, they had imposed the surveillance state to keep them in line. So why are we accumulating a national debt to build the slave state again in the West? Where is the contrarian, uncomfortable literature to put the state experiment finally to rest?

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Thursday, August 15, 2013

Taxing High Income Retirees: Here We Go Again. To St Susan.

Redistributors: you have to love their total ignorance of ethics or philosophy.

We all know there’s a baby-boomer retirement problem coming; unfortunately this is providing more excuses for grand larceny by those people who would prescribe for a whole nation of adults, what would be morally abhorrent if I applied to their children. Hear me out, and look at this:

Retirement policy researcher Associate Professor Susan St John says an alternative could be looking at improving the tax system and the way it operates.

"For high income retirees, for example, who could pay a bit more without any undue pain, and help the immediate fiscal position."

Heaven help you if you earn money in this country.

What Susan is saying is who cares how hard retirees have worked through their lives, or the plans and aspirations for themselves in retirement they were planning for. As I said in this earlier post, it would be handy if legislation could deem when such people, let's call them victims, start feeling undue pain, given how many taxpayers are interrogated and broken down in IRD’s room 101 on the strength of it. And casting my eyes up from keyboard, I would note my neighbour here has three cars, but the one next to that just the one, so I’ll drop them a note to the effect Susan says simply take the excess one from next door and even yourselves up a bit. (Don’t mention the war, though: referencing that war fought for the free West based on property rights).

This breath-taking advocacy of theft is something I will always find takes the wind out of me.

My suggestion is leave people to their own decisions and the retirement beds they make with them. It’s the only way for a free society to exist, and it leads to better outcomes. As further example, from the same article:

A higher tax on retirees is one idea being floated in response to calls by Labour for the Government to sort things out ahead of the impending boom in baby boomers.

All I need do is point out, over and over and over, the contradictions leading to the unintended consequences of government interventions in the voluntary decisions of individuals.

Most retirees should have their own mortgage free home: selling this down in size and value, including to a licence-to-occupy in a retirement home, is probably one of the main sources of retirement funding in New Zealand. 

Unfortunately, Labour has a stated policy of wanting to sacrifice retirees to first home buyers by destroying the value in our housing stock, and thus the property market. They have various nefarious ways of achieving this from capital gains taxes through to restrictions on foreign buyers. I’ve written on this only last month, and in that post I stated New Zealand was fortunate to have a solution to the baby-boomers selling their homes into a dwindling market to fund their retirements, in the form of well-off foreigners wanting to bring their life-long savings from their country of origin, to our country, to give to Kiwi retirees for their homes and so fund their retirements. Labour's restrictions on foreign ownership would deny retirees this market.

So Labour are at the same time stating the need to tax retirees to cover retirees in retirement, while advocating policies that will destroy the single source almost all retirees will have to fund their retirement with: their homes.

Politicians – redistributors - just cannot help themselves. They seem to feel they have to be seen doing something, and so we get this hotchpotch of nonsense legislation marching out from the Fortress of Legislation with the iron fist of the state enforcing it saluting in our faces even as it reaches into our pockets. The ethical solution to the ‘problem’ of retirees is given by free markets, not redistribution. And by the by, lets never confuse legislating with law-making.

Finally, St Susan: this blasé attitude you have to my property, stop it please. You wouldn’t instruct your kids to go steal from kids with more toys than they have, because you know what type of adults such instruction would result in: well don’t make a national policy out of precisely the same immorality. In other words, and to all the people who have told me even over this last month by tweet and email, that if I disagree so much with the statism that rules here, why don’t I leave: no, thank you, I’m staying. Instead, why don’t you just grow up?


  1. Of the desire to do good with other people's money, there is no end. St Susan is a vocal proponent of such policies. To hell with the unintended consequences, with individual property rights, with liberty, choice, personal responsibility, in fact anything that is foundational to functional civil society.

    The great irony is that these people like St Susan who are cosseted and sustained by a seemingly endless supply of tax payer funding, would destroy the enterprise that creates the wealth upon which they are personally dependent.

    It's shameful.

    1. The other irony is they believe themselves to represent the compassionate society, and thus have the moral high ground.

      Wrong on both counts. Something in our schools teaches people to feel about issues like this, rather than think about them.

    2. "something in our schools" - two things in our schools.

      The visible: unionised teachers indoctrinated in other state "schools" into socialism.

      THe invisible: that schools (and teachers colleges etc) are all socialist institutions. They get money from the government, they answer to education ministry bureaucrats. Charter schools are still state-funded - they will be no different.

      What's the solution? simple: terminate all school funding. Fire everyone. Bulldoze the lot, and sell off all the land with no zoning restrictions --- most schools would be worth far more as residential property! Remove all legal requirements for school attendance.

      Because if parents don't love their children enough to pay to send them to school, why can anything the state do make any difference?

    3. Antonio Gramsci, founder of the Italian Communist Party, said the free world would not be defeated by the gun, but by bending the minds of the impressionable young.

      95% of NZ secondary school teachers belong to the union, and our school curriculum lectures the sacrifice of an individual's liberty to the bloodied altar of the common good.

    4. And National Standards measure each school on how well they are producing compliant little National Socialists.

    5. Yes.

      OT AngryTory, I had an email last night saying you'd commented on another thread (contradictions of Labour policy), however, it's never appeared on the blog.

      Did you delete it?

      Note, it's fine if you did, I'm chiefly making sure that Blogger is not glitchy, or, worse, censoring content.

  2. The biggest distortion is the National Super - the codger-dole - free money for everyone over 65.

    You could have been a bludger all your life on the dole, but turn 65 and ka-CHING!

    Inasmuch as Labour's tax will remove the more of the codger-dole it should be applauded.

    What's the right retirement policy? simple - end the codger-dole for everyone immediately. Also end any and all subsidies for rest homes, state hospitals, etc. yes there would be temporary dislocation with a few tens of thousands dying in gutters, but that would last less than three months.

    And after that, every Kiwi of every age would never forget that the state cannot be relied upon for their retirement.

  3. "... end the codger-dole for everyone immediately... And after that, every Kiwi of every age would never forget that the state cannot be relied upon for their retirement"

    There in lies the problem for those that do make the effort to set something aside. For the longstanding current state of affairs, a slight rewording...

    "And after that, every Kiwi of every age will never forget that the state can be relied upon to pillage and redistribute their retirement savings"