"Good in principle," says National Finance spokesman John Key on Radio Live this morning describing Cullen's Kiwisaver. Key's only stated objections are "he has doubts about the number of employees who will choose to stay in the scheme," and "you can still move your money in and out of your account."
Sounds like he doesn't really have an objection. After all, he has no objection "in principle" to a government-run savings scheme. He's just unhappy it's not him bringing in the scheme.
This much of what Key said is almost true: "The fundamental problem is that Kiwis don't save enough because they don't earn enough." It's almost true: Kiwis don't save enough -- not because they don't earn enough, but because they don't take home enough. If you want people to save, and NZ certainly needs the capital, then just stop taxing them over forty-percent of their income so that there's something left from their pay packet to save!
You don't need fancy government schemes in which taxpayers get back some small amount of their own money from the government. You just need to let people keep their own money in the first place. Ending tax on all interest-earning accounts might be a start, eh?
TAGS: Politics-National, Politics-NZ