New Zealand’s economy is probably much worse as it appears. Those OTT (over the top) lockdowns over covid cost about a billion dollars a week, and they did several of them for several months. To pay for it, they printed money which is now causing problems with inflation. There are also staff shortages in many area’s, and then staff that have been mandated out of their jobs. (join the dots….). This led to the extraordinary ill-fated raid on our superannuation funds, which lasted a whole 5 hours of scrutiny.
An email I received from the taxpayer union this afternoon (edited to keep just the juicy bits and clarity for non-kiwi folk)
From: dddd <team@taxpayers.org.nz>
Date: Wednesday, 31 August 2022 at 1:04 PM
To: xxxx@xxxx.xxx
Subject: Mr Robertson (Finance minister) is coming for your retirement fund
Dear xxxx, Have you seen the news this morning? Grant Robertson, Jacinda Ardern (prime minister), and David Parker are coming for your retirement fund with a new tax. I’m emailing to ask for your support so we can stop this outrageous tax on savings, superannuation, and retirement.
Make no mistake xxxx, this proposed change to GST is the most significant and sneaky introduction of a new tax we have ever seen. It is clearly an attempt to paper over the financial mismanagement of Grant Robertson and the explosion of Government spending in the last few years.
The tax hits the very thing New Zealand needs more of: savings and investment. That’s why we need to step up and launch a campaign to force the Government to Axe this Super Tax.
This tax came from nowhere. The Government has snuck it into an administrative taxation bill. It directs funds from savers into the Government’s pocket.
The numbers are eyewatering. The Financial Markets Authority says this new tax, and its compounding effects will dent retirement funds by $186 billion by 2070.
That’s the equivalent of more than half the size of New Zealand’s entire economy this year. Remember, even small annual changes in taxes applicable to savings compound into thousand-dollar fees. That’s what makes this new tax so nasty, and economically destructive.
Someone with a $100,000 Kiwisaver fund being charged a 1% fee will see them lose $21,000 to Grant Robertson’s Super Tax over the next 25 years.
Right now the team in Wellington are working on a quick response campaign to fight Grant Robertson across print, digital, and (contingent on the war chest) TV advertising.
Your support means we can hold to account the Government on their broken promise of ‘no new taxes’.
This Government has spent like a drunken sailor on shore leave. But instead of tightening his belt, Grant Robertson is hoping your nest egg will solve his financial hole. We can’t let him get away with it. Click here to make a confidential donation.
Thank you for your support.
An email I got five hours later…
Dear xxxx,
Government caught red-handed
What a day! In what is probably the fastest back down in the history of backdowns, Revenue Minister David Parker has just announced that he is pulling the pin on the Government’s proposed “Super Tax” on Kiwisaver and managed retirement funds!
The hundred billion dollar back down.
The news came through as the staff were literally going through draft designs for full-page nationwide newspaper ads pencilled in for tomorrow.
What’s incredible is that Ministers were across the media all morning defending the policy – they were clearly well briefed and knew exactly what they were proposing. But by this afternoon the writing was on the wall. Minister Parker was forced into a swift U-Turn following widespread opposition.
This Government is student politics disorganisation but at a national level.
In Parliament today, the Prime Minister claimed that the GST change has been in the pipeline for years, but we keep a very close eye on IRD’s tax consultation papers – and let me tell you this proposal came from nowhere.
This Government’s fiscal management and wasteful spending is out of control. Grant Robertson, David Parker and Jacinda Ardern are desperate to paper over their fiscal holes with your money. That’s why a strong Taxpayers’ Union is so important right now.
Thank you for your support. dddd @ Taxpayers’ Union
Uncoffined 
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