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Sunday, September 11, 2005

Greenie economics

The Greens still can't quite figure out this ecominomics thing. How else do you explain describing a tax reduction as a subsidy?
Let’s be clear: cutting petrol tax would be a subsidy, because it would shift the cost of the things it funds, such as land transport, off motorists and on to taxpayers.
Let's be clear. This is not the definition of a subsidy, quite apart from being completely dishonest about where petrol tax money goes.
· Linked Article

Posted by Chefen | 9/11/2005 02:28:00 am

9 Comments:

Anonymous Psycho Milt said...

Indeed, successive govts have shown the idea of petrol taxes being used on land transport infrastructure to be a motorists' pipe dream. But you have to remember, the Greens ride bikes - probably no-one's told them yet that petrol taxes are a big slush fund for whatever the govt's got on this week. Someone should tell them though, because by their logic petrolheads are providing a subsidy to these biking and walking bludgers.

The thought occurs, someone could tot up the figure of how many more hip operations we could do each year if everyone just drove another 100 k a week...

9/11/2005 05:22:00 am  
Blogger Antarctic Lemur said...

Burning fossil fuels for the People?

9/11/2005 05:48:00 am  
Blogger JamesP said...

What proportion of the petrol tax goes into the consolidated fund again, 50%?

OTOH I'm glad the Greens are now opposed to subsidies. Perhaps they will now be opposing the Kyoto madness where we will be sending $$$ to Russia and Eastern Europe simply because they negotiated artificially high base emission levels

9/11/2005 10:12:00 am  
Anonymous Anonymous said...

The Greens should encourage everyone to drive (at motorcade speeds) 60s American cars, to drink whisky and smoke two packs a day.

For the people comrade!


EXOCET

9/11/2005 10:22:00 am  
Blogger ZenTiger said...

I hade a look into the petrol taxes thing, because I assumed it was all a percentage.

I could find noting definitive, so corrections welcome, but it appears to me the levies, duties, surcharges and whatever are all fixed amounts. The GST is a percentage, and has a big effect as the prices increase, but that appeared to be the only percentage item.

Therefore the 47% figure bandied around a few months ago should now be a mere 45% or so given the latest increases.

New surrcharges are scheduled though, as part of Kyoto (again, correct me if I'm wrong)

9/11/2005 11:08:00 am  
Blogger Antarctic Lemur said...

I thought GST was on top of the surcharges. I think Hide found a BP graph which showed the various cost components of petrol in New Zealand

9/11/2005 11:16:00 am  
Blogger ZenTiger said...

AL, yes I agree. THe GST is calculated on the entire price as usual, which means we are paying GST on the surcharges as well as the product price.

That kind of situation always irks me a little - especially GST on rates. That is a pure "tax on tax" situation.

9/11/2005 11:20:00 am  
Anonymous JPB said...

psycho milt says:

But you have to remember, the Greens ride bikes...

Bullshit they do. They preach to everyone about riding bikes, but in fact are themselves more often then not driving the most disgusting, polluting old cars they can get at the junk yard for under $500. The dole doesn't go to far, you know - what with dope prices being where they are...

9/11/2005 04:27:00 pm  
Anonymous Anonymous said...

no jpb..we've all upgraded..

$500 gets you a reasonable car these days..

i got a tidy 92 mazda/ford shopping basket fizzer for $500..(metallic blue..ooooo!..)

snd you are right about those dope prices..bring on decriminalisation as a first step towards sensible/fair/consistant drug policies...

it'll be nice to be able to legally grow a couple of plants...sigh...

phil(whoar.co.nz)

9/12/2005 06:52:00 am  

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