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Title: Savings Plans
Description: labour's announced something interesting


liz_shaw - April 6, 2005 09:50 AM (GMT)
http://xtramsn.co.nz/money/0,,5483-4263525,00.html

This feels a bit weird coming from me. I dislike Labour with a passion but over the last week with Steve Maharey's comments in the media and possibility to take over leadership (we can hope), I am now undecided on who to vote for with this years election.


QUOTE
The report, titled Opportunity for a lifetime: Creating an ownership society in New Zealand, is the fourth and last of a series released by the institute on creating "an ownership society" in New Zealand.

Under its proposals, a two percentage point across-the-board reduction in the personal tax rate would be diverted into the individual's savings account in the form of an annual lump sum contribution.

This would reduce the 33c tax rate to 31c and the 39c tax rate to 37c.

According to the report, 2% of everyone's taxable income will be saved in this way, including those who are receiving welfare benefits.


QUOTE
Under conservative assumptions, the report says, these accounts could have balances of more than $14,000 by the child's 18th birthday.

This would eliminate the need for a student loan for many and would ensure everyone starts adult life with a firm financial base.


I am very much in support of this plan. It will create an educated society, one that can prosper and one where people can own houses again.

I voted the last option, if steve maharey takes over leadership I would consider it but not with helen clark.

Fez - April 6, 2005 10:59 AM (GMT)
Saw this on the news too

Think its a good idea but doesnt sound like Cullen is keen on it because of the initial expenditure.

Wow, good to see you can see good things in Labour Liz, good on ya.


liz_shaw - April 6, 2005 11:02 AM (GMT)
well after about a hundred confrontations you sort of have to reevaulate things and take things for what they are.

It is good to see that they are listening to the public and are doing something to promote an educated society. This could be the best thing New Zealand has had in actual fact. The future of the county are going to have money invested, before they are even born. It is an excellent plan, but is it just an election ploy?

I am unsure, I will keep following this! :clap:




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