idea to use sales tax on fuel to stabilise the economy .

http://www.nzherald.co.nz/section/1/sto ... d=10490892

I find the idea interesting , however i would set a minimum level it cant go below . and of course the revenue to be spent on ALL transport modes .
Another way the govt has tried to influcence the economy , is by not starting major rail / road projects while there is a building boom on . instead , it has waited until there is a down turn , to try and avoid the boom / bust cycles that make long term planning difficult for everyone .

David Benton wrote:http://www.nzherald.co.nz/section/1/sto ... d=10490892

I find the idea interesting , however i would set a minimum level it cant go below . and of course the revenue to be spent on ALL transport modes .
Another way the govt has tried to influcence the economy , is by not starting major rail / road projects while there is a building boom on . instead , it has waited until there is a down turn , to try and avoid the boom / bust cycles that make long term planning difficult for everyone .

Economic theory needs a lot of going into. There are so many quack notions about. The free market gang hate all taxes but we can't run a modern society without them. The European Union insists that every country has a Value Added Tax which in theory is levied every time any process improves the value of a product. It is paid by the ultimate purchaser, unless he can show it is a cost in his business. In Britain food has no VAT and some things like books, newspapers and children's clothes. However, once VAT is levied it can never be taken off, but reduced to a minimum level - 5% I think. The usual rate is 17.5%.

It's a marvellous idea in theory but probably daft in practice.

I hear that as Bad Times return John Maynard Keynes is coming back into fashion.

Mass unemployment might return to the US. Certainly mass poverty has already arrived, alongside obscene riches for a few. I don't think Sales Taxes are the answer but proper Income Taxes for the rich and proper Corporation taxes for the big business.

What may bring investment into rail ought to be climate policy, but so far in Britain nothing is happening except a reduction in subsidy and a huge rise in fares.

i can see that the idea of varying the gst rate would be a nightmare to implement and enforce . but the idea of varying the sales tax on petrol could work , youd probably restrict the changes to twice a year . probably about how often the govt changes the sales tax on it now . more like an excise tax really .
Right now , were heading into an election year , govt has run large surpluses for the last few years , so there's talk of tax cuts from both main parties . it may be a case of who offers the biggest tax cuts wins the elections , although that didnt save John Howard on Australia .

David Benton wrote:i can see that the idea of varying the gst rate would be a nightmare to implement and enforce . but the idea of varying the sales tax on petrol could work , youd probably restrict the changes to twice a year . probably about how often the govt changes the sales tax on it now . more like an excise tax really .
Right now , were heading into an election year , govt has run large surpluses for the last few years , so there's talk of tax cuts from both main parties . it may be a case of who offers the biggest tax cuts wins the elections , although that didnt save John Howard on Australia .

The rightwing nutters have had it their way for about 20 years, claiming that tax cuts are the answer to all problems. Their real intention is to cut taxes "for the wealthy". Taxes for the poor actually go up, when they raise sales taxes instead of income tax. Thatcher trumpeted cuts in income taxes - which benefitted high earners; but was quiet about increases in VAT.
We are entering a period when large investments are going to be needed in what I and my associates call "geotherapy": the switch from fossil fuels to renewable energy, and also investment in methods to extract the excess carbon from the atmosphere. These are going to need higher taxes.
One reason for the tax revolt is, I suggest, the fact that taxes were high during the Cold War. When that ended, revealing that the USSR had always been a paper tiger, people felt deceived and demanded lower taxes. The problem now is that we have real rather then fantasy enemies. How to persuade people that higher taxes are going to be needed for investment in curing this problem (when the rightwing nutters are telling us that this isn't a real problem, anyway)?
In order to encourage non-carbon energy there ought to be some incentive for people to change - once an alternative is available. In Britain the Treasury tried to raise taxes on oil products when there is no alternative available. Of course people resisted.

If your rail lines were revived and electrified that would be an alternative to some road journeys. If hydrogen from geo and hydro energy were freely available then higher prices on oil products would be essential.

we will have a carbon tax , not sure when its been introduced .
biofuel is the most likely alternative to diesel to be produced here . we also have huge mounts of cat effluent to deal with , from the expanding dariy industry .
The railway is probably about 30 % electfified , carrying maybe 60 % of the traffic .
Auckland comute services wil bee electrified , and that may spur further electrification to Hamilton . biggest obstacle to rail development at the moment is a spate over track charges between the govt and the rail operator toll .

David Benton wrote:we will have a carbon tax , not sure when its been introduced .
biofuel is the most likely alternative to diesel to be produced here . we also have huge mounts of cat effluent to deal with , from the expanding dariy industry .
The railway is probably about 30 % electfified , carrying maybe 60 % of the traffic .
Auckland comute services wil bee electrified , and that may spur further electrification to Hamilton . biggest obstacle to rail development at the moment is a spate over track charges between the govt and the rail operator toll .

NZ has huge hydro potential, and also a great deal of geothermal potential. You could emulate Iceland and cut out all oil imports, replacing oil products with hydrogen. That is iceland's long term plan.