Te Utu Tika Hei I Oranga Aotearoa-Basic Income New ZealandA Basic Income is big enough to make a difference and small enough to be affordable. |
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Newsletter January / February 2024 |
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“A Basic Income is a periodic cash payment unconditionally delivered to all on an individual basis, without means-test or work requirement”. Basic Income Earth Network (BIEN) Definition. BIEN began 2024 with the republishing of Guy Standing’s article The Evidence for Basic Income is Now Sufficient, first published by Basic Income Today-The Universal Basic Income News Hub, Oct 5 2023 In Aotearoa - New Zealand 2024 is bringing debate around Te Tiriti o Waitangi and the economic policies being implemented by our National/New Zealand First/ACT Coalition Government. Guy’s article is a bold statement for us, Te Utu Tika Hei I Oranga Aotearoa - Basic Income New Zealand (TUTHOA - BINZ) as we begin another year of advocacy for the introduction of a Basic Income for all New Zealand citizens.
The Evidence for Basic Income is Now Sufficient by Guy Standing In 1942, as people started to think about remaking society after the War, William Beveridge wrote a report for the British government that was to shape the welfare state in Europe. He wrote, ‘It is a time for revolutions, not for patching.’ What he meant was that it was useless to make minor changes to the old system. A new system was needed. The evidence was clear. Today, we are at a similar juncture. The social policies of the 20th century are outdated. Selective schemes for what economists call ‘contingency risks’, such as a spell of unemployment, an illness or an accident, do not deal with the defining challenges of our age. We live at a time of rentier capitalism, in which more income goes to owners of property – physical, financial or intellectual. Read more https://basicincome.org/news/2024/01/the-evidence-for-basic-income-is-now-sufficient/ |
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Please sign Te Utu Tika Hei I Oranga Aotearoa-Basic Income New Zealand’s PetitionAt present we have 971 signatures, when we reach 1,000 we will present at Parliament. To: Members of the House of Representatives Introduce a Basic Income in Aotearoa New Zealand https://our.actionstation.org.nz/petitions/introduce-a-basic-income-in-aotearoa-new-zealand Urge the Government to introduce a weekly Basic Income payment to everyone living in Aotearoa New Zealand, paid in cash, not means-tested, and independent of other income, assets, and relationship status. Why is this important? We believe recent disasters have heaped misery on people, many of whom live in permanent crisis. In our view, previous actions have been unsuccessful in preventing persistent poverty; poverty has been exacerbated by recent disasters; and the current system is not fit for purpose. A Basic Income can be a foundation upon which an equitable system can be built. We feel we urgently need a system that is both unbureaucratic and reliable, to lift people out of poverty and provide help when needed. | | |
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ACT’s tax proposals. Radio New Zealand (RNZ) reported on Monday 29 January 2024 that Treasury will be asked to look at the ACT party tax proposal. It will be interesting to see what Treasury make of it. In some respects, ACT’s proposal is not too unlike what might be proposed for a viable Basic Income scheme. However, two fundamental differences make it quite different to a Basic Income proposal. A Basic Income proposal would support a flatter tax scheme than ACT's does, perhaps two or three stages rather than the five we have at present. But it would support a higher base rate and higher rates for all tax bands than ACT’s proposal and avoid any tax cut for those in the top tax band. Act proposes a “LMITO” (Low to Middle Income Tax Offset) which just appears to be the “IETC” (Independent Earner Tax Credit) that is available now, but with a different name and with different thresholds and amounts. The IETC or LMITO is a tax credit for those with low to middle incomes which reduces their tax liability because the taxes paid by those on low to middle incomes would otherwise be too high. While ACT’s LMITO is only available to those in work, a Basic Income scheme would make it available to everyone and pay it at a higher rate than ACT proposes. In other words, it would be paid as a Basic Income that is unconditional and universal. There are two fundamental problems with ACT’s proposal. 1. While ACT claims its proposal will benefit those on low or middle incomes, it will increase the tax rates for those on low incomes and give the largest tax cuts to the highest-income earners. ACT appears to think that this will boost the economy and make those on lower incomes better off – it appears they believe in the “trickle-down theory”. But “trickle-down” does not and never has worked because more money trickles up than trickles down. In contrast, extra income received by the poor is invariably spent on necessities such as food and accommodation or spent in the local economy, boosting the economy and the well-being of all. Tax cuts for the wealthy should be avoided. When the wealthy receive tax cuts or additional income, they do not spend all their additional income in areas that will boost the economy and enhance the well-being of all, they are likely to spend some of it on self-indulgence, such as increased alcohol consumption, or overseas pleasure trips, or use it to increase their net wealth adding to the disparity between the rich and the poor. The majority of the poor are more careful with their expenditure than the wealthy and will spend additional income on necessities such as food and accommodation. It is a myth that the poor will spend any extra money they receive on alcohol. In contrast, the wealthy are known to spend more on alcohol than the poor and with additional income will either buy more expensive alcohol or just more alcohol. 2. ACT’s LIMTO is insufficient to offset the additional taxes paid by those on low incomes and is not available to those who do not have employment. Basic Income advocates would make the LMITO larger, unconditional, and universal, so that it is a true Basic Income that benefits everyone. Basic Income advocates would also ensure that the extra tax required to pay for a Basic Income comes from those who have the most and can afford to pay, not from those who have the lowest incomes and wealth. More discussion on ACT’s tax proposals is available on our 2023 election page: https://www.basicincomenz.net/election-2023 . We can only wait to see what Treasury will make of ACT’s proposal. | | |
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Iain Middleton: New Zealand Superannuation – no need for reform TUTHOA-BINZ has long argued that New Zealand Superannuation (NZ Super) is an excellent example of a Basic Income for those over sixty-five. We have also argued that NZ Super is sustainable and that there is no need to raise the age of eligibility or to reduce the value of the payments. See our NZ Super web page: https://www.basicincomenz.net/nz-superannuation . In recent years, the Retirement Commissioner has supported us in this argument. Now we are joined by the New Zealand Society of Actuaries who have looked at the issue and have come to the same conclusion. Their Retirement Income Interest Group have compiled a report, New Zealand Superannuation: An actuarial view on reform, January 2024. The report authors: Alison O’Connell, Christine Ormrod, Dinushi Jayasuriya, Ian Perera (Convenor), Fraser McKay, and Kelvin Prisk argue that it is unnecessary to raise the age of eligibility and important that we do not. If anything, they say, we should look at reforming Kiwi Saver to encourage or ensure that people make adequate provision for their futures. Dr Alison O’Connell, one of the report's authors, was interviewed on Radio NZ, Nine to Noon, on 30 January 2024. You can listen to or download the 18-minute interview: https://www.rnz.co.nz/national/programmes/ninetonoon/audio/2018923963/don-t-meddle-with-nz-super-actuaries-report The full report, 26 pages, is available in pdf format: https://actuaries.org.nz/content/uploads/2024/01/RIIG-NZS-Reform-Jan24.pdf A leading proponent of the campaign to raise the age of eligibility was the late Kiwi Saver salesman Bryan Gaynor who used simplistic and dubious arguments and fear tactics to try and convince people that NZ Super was about to collapse or would not be available in the future when they retired to persuade people to put more money into Kiwi Saver schemes such as those promoted by his firm, Milford Asset Management. This was self-interest, the more people who put money into Milford Asset Management, the greater his personal income and wealth were likely to be. In parliament, the campaign to raise the age of eligibility has been spearheaded by David Seymour of ACT who argues, without any sound evidence, that raising the age of eligibility is urgently required. The National Party has also argued for an increased age of eligibility but say that it will be required at a future date to give people time to adjust. In contrast, NZ First, and Winston Peters who has personally opposed raising the age of eligibility, have opposed change. The Coalition agreement https://assets.nationbuilder.com/nzfirst/pages/4462/attachments/original/1700784896/National___NZF_Coalition_Agreement_signed_-_24_Nov_2023.pdf?1700784896 signed between NZ First and National includes the following provisions: Keep the superannuation age at 65 Upgrade the Super Gold Card and Veterans Card to maximise its potential benefit for all Super Gold Card and Veteran Card holders. Explore options to build on the Local Government Rates Rebate Scheme for Super Gold Card holders. Support seniors by maintaining the Winter Energy Payment, increasing Super every year and boosting it with our tax relief plan, which will see a superannuitant couple get over $600 extra each year Hopefully, this means that NZ Superannuation will be protected for the next three years or more and hopefully we will one day also be able to extend a Basic Income to working-age people
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UNIVERSAL BASIC INCOME IN THE EUROPEAN UNION 31st January 3pm Brussels / 9am Washington DC/1 February 3am New Zealand This is a short online seminar-webinar, even though it does mean an early morning rise at 3.00 am on Thursday 1 February. Two of the speakers are known to us as Basic Income supporters, Geoff Crocker and Scott Santens. . Allow some time to get online as this webinar uses Webex which must be downloaded before the event – it usually only takes five minutes. You can download it before the event. https://europeanparliament.webex.com/europeanparliament/j.php?MTID=m4e49dbc5ff7d991a65c8898e4abb5f78 Speakers: GEOFF CROCKER: U:K / Author of “The Case for Basic Income” CHRIS THOUNG: UK / Director of Cambridge Econometrics SCOTT SANTENS: Washington DC / Founder and President of ITSA Foundation and author of “Let There Be Money” JIŘÍ ŠVARC: Brussels / European Commission / Head of Unit of DG Employment, Social Affairs and Inclusion. |
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An exciting new book by Guy Standing The Politics of Time, Gaining Control in the Age of Uncertainty To be published 6 February 2024 Time has always been political. Throughout history, how we use our time has been defined and controlled by the powerful, and today is no exception. But we can reclaim control, and in this book, the pioneering economist Guy Standing shows us how. The ancient Greeks organised time into five categories: work, labour, recreation, leisure and contemplation. Labour was onerous, while the keys to a good life were self-chosen work and leisure (schole), which included participation in public life and lifelong education. Yet now our jobs are supposed to provide all meaning in life, our time outside labour is considered simply 'time off', and politicians prioritise jobs above all else. Today, we are experiencing the age of chronic uncertainty. Stress and mental illness are on the rise as more and more time is being stolen from us in myriad ways, particularly from the vulnerable and those in the precariat. But there is a way forward. We can create a new politics of time, one that liberates us and helps save the planet, through strengthening real leisure and working on shared endeavours through commoning. We can retake control of our time, but we must do it together. |
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Do you have (WIX) Website skills? Post on Facebook? (https://www.facebook.com/BasicIncomeNZ/) Have a bit of spare time? Can assist? Contact Karl: |
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