Real Issues No. 323 - Just Tax, Welfare, Volunteering Maxim Institute - real issues - No. 323
16 October 2008 www.maxim.org.nz
Is it Just Tax?
The shaping of our society Dumping the dole? Connecting for a cause
IN THE NEWS Foster care shortage in South Australia House of Lords reject 42 days NZ Votes Political Debates An
invitation to 'Breakthrough New Zealand'
Is It Just Tax? The Shaping Of Our Society
Tax and the economy are issues on many people's minds at the moment; raising questions that all governments and
societies must debate. Questions of fairness, compassion for those in need and the limits to freedom, are all
foundational to the tax debate. They help us define our society and influence what we think of policies like progressive
taxation, Working for Families and KiwiSaver tax credits. These foundational issues are addressed in a new discussion
paper from Maxim Institute: Is it Just Tax? The shaping of our society.
The paper questions assumptions behind the tax system and its policies, beginning with the popular debate about
'fairness' or justice. 'Fairness' is often pursued by policies designed to alter people's outcomes, like redistribution
to achieve greater income equality. However, the paper argues that justice actually depends on treating people equally,
and that it must go hand-in-hand with a moral obligation to those in genuine need and hardship. This casts doubt on
policies like progressive taxation, which treats people unequally, and Working for Families and KiwiSaver tax credits,
which benefit many who are not in need.
Tax policy also raises certain issues of freedom. For example, the increasing reliance on tax incentives poses subtle,
but real implications for freedom, as the incentives attempt to shape people's actions. More obviously, paying taxes is
compulsory and therefore inevitably limits freedom. Of course, freedom must be limited in some way, and the paper argues
that the need to protect society's common good from harm defines the limits of freedom. This then should also dictate
the boundaries of taxation. Again, this leaves current policies open to question -- the 'poverty traps' (disincentives
to earn more) and 'marriage penalties' (tax structures that disadvantage couples) of Working for Families are an example
of tax policy creating threats to the common good, and so are high levels of taxation which leave people dependent on
government provision.
Tax reform is a hot topic these days, but one where many fundamental assumptions go unquestioned. Big picture questions
about the shape of our nation, the way we care for those in need and what it means to be a citizen and pay our dues are
often drowned out in a welter of calculators and dollar signs, and unchallenged rhetoric. Connecting the debate about
change to the bigger picture is the best way to guard against short-term and superficial reform, and gives us a system
that taxes fairly, embodies genuine compassion and respects freedom.
Read Is it Just Tax? The shaping of our society or purchase a hardcopy http://www.maxim.org.nz/index.cfm/Publications
DUMPING THE DOLE?
Maori Party co-leader Tariana Turia launched the Maori Party's economic policy in Flaxmere this week, and re-ignited the
debate on welfare by calling for the dole to be reformed. Asked by TV3 News whether she wanted the dole to be scrapped,
Mrs Turia said, 'Yes. Absolutely. I'm opposed to the dole. I have to be very frank with you -- I don't think it is
healthy for the spirit of our people, to be getting money for doing nothing.' She called for 'the government to make
work' to help foster a 'work ethic' among Maori.
Mrs Turia's remarks show a bracing awareness of the realities of the welfare system. The support of the destitute should
be the aspiration of every decent human being and a hallmark of our society. But the dole should be for those with no
other option, who are genuinely unable to work. A positive culture that is good for people is one which encourages and
values hard work and the creativity and productivity which goes along with it. There is also a sense in which by working
hard we honour the way others work and in so doing take our responsibility as citizens seriously. Getting people into
work is a win for all concerned.
The challenge then is 'how?' Using government funded work schemes is hardly the answer for permanent change. If we are
to see genuine progress in this area we need to be thinking more creatively, we need to build a system that helps people
to be accountable, and we need to do a better job mentoring people off the dole into genuinely useful jobs that will
give those involved a strong sense of satisfaction and accomplishment. Although benefit numbers have been declining due
to a good economic climate Mrs Turia is right -- we cannot afford to leave so many people without a chance at a future.
Welfare reform should be high on society's agenda, and it is positive and progressive to hear someone stepping up to the
issue which continues to weigh down so many people.
CONNECTING FOR A CAUSE
Many people are intuitively aware of the value of volunteering and are stirred by the issues that they see or hear
about, but do not know what they could contribute or how to go about doing that. Simultaneously, many organisations need
support but are not sure where to find willing people. The problem of information is one of the big challenges for civil
society as different pockets of the community remain isolated from one another and unaware of the needs or potential
resources that may exist either nearby or far away. The internet has the capacity to help remedy this divide. A new
website has been launched that aims to connect people and organisations with similar passions, helping the non-profit
sector raise its profile and informing citizens about how and where they can volunteer.
The website www.gomad.co.nz, has been created by Good Magazine and Intrepid Travel in order to conduct the Intrepid
Volunteers Challenge, aiming to bolster volunteering in New Zealand. The site functions as a social networking site, in
which individuals can fill in a description of themselves, creating an online profile about who they are and what they
are passionate about. At the same time, organisations can fill in information about what they do and what needs they
have, giving people and organisations the opportunity to connect with each other. The organisations and the interests of
individuals are diverse. One person says that they can volunteer in health or nutrition work in Wellington, while
another is interested in corporate volunteering internationally. Each person who signs up has a profile space, an inbox,
information about events, and the capacity to interact with other individuals or organisations that spark their
interest.
For the volunteers who participate in the 'Intrepid Volunteers Challenge' there is an additional incentive. After a
year, awards will be presented to those who have been most active in the challenge, with one person winning a
volunteering trip overseas.
Intrepid Volunteers appeals to our prolific desire for adventure and the wish to impact the world. The introductory page
of the site is splashed with the phrase 'want to change the world, click here.' The site is one small attempt to use
available resources to contribute positively to the good of society. While the attempt is small and its effect yet to be
proven, it has the great capacity to network and inform, a capacity crucial as needs and the resources to meet those
needs can often be geographically disconnected.
Find out more about the 'Intrepid Volunteers Challenge' http://www.gomad.co.nz/
IN THE NEWS
FOSTER CARE SHORTAGE IN SOUTH AUSTRALIA
According to news reports, South Australian authorities stumped up $16 million dollars last year for 'emergency
accommodation' for children in care -- including 'motels, caravan parks, B's and serviced apartments.' The temporary arrangements for 63 children came due to the shortage of foster carers in the
Australian State. While emergencies are by definition unusual circumstances, the news report highlights the vital, and
often overlooked role played by foster parents and families in giving children the stability and peace they desperately
need. The role of foster parents is one of generosity and compassion, giving to children-at-risk open homes and open
hearts -- in New Zealand, as well as Australia.
HOUSE OF LORDS REJECT 42 DAYS
The House of Lords have voted against a measure that the British Government was attempting to pass that would have
allowed suspected terrorists to be detained for up to 42 days before being charged with an offence. The
Counter-Terrorism Bill, which passed through the House of Commons before being passed on to the House of Lords, was
deemed an abuse of the principle of habeas corpus -- the principle protecting an individual from arbitrary detention by
the state. The public fear of terrorism should not account for over-reaching infringements of basic civil liberties, a
fact which was recognised by the peers in the House of Lords.
Read the Counter-Terrorism Bill 2007-08 http://services.parliament.uk/bills/2007-08/counterterrorism.html
NZ VOTES POLITICAL DEBATES
With only five NZ Votes Political Debates left, check out the website and find out when one is coming up in your local
area.
http://www.nzvotes.org/
AN INVITATION TO 'BREAKTHROUGH NEW ZEALAND'
On 3 November 2008 Maxim Institute will be hosting 'Breakthrough New Zealand,' a lecture by Dr Samantha Callan, a family
policy expert from the UK. The lecture will examine possible lessons to be learned for New Zealand from the extensive UK
report Breakthrough Britain, which looks at reducing the costs of social breakdown.
The lecture will be held at The Gus Fisher Gallery, The Kenneth Myers Centre, 74 Shortland Street, Auckland starting at
6.00 pm. Drinks and canapes will be served. Entry is free.
If you would like to attend the event please RSVP to Maxim Institute's Events Co-ordinator, Kerry Alemann by Monday, 27
October 2008.
Find out more about the event http://www.maxim.org.nz/index.cfm/Events
TALKING POINT
'[A] re-balanced tax system will require us to take greater responsibility for our own well-being and for the well-being
of those around us. This devolution and assumption of personal responsibility and concern for others, to the point of
personal sacrifice, will require cultural change. It will, however, allow justice, freedom and compassion to flourish
better than at present ....'
Alex Penk, Is it Just Tax? The shaping of our society
ENDS