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Speaker 1: In a world of pressing problems, one of the bigger,

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Speaker 1: longer term ones is due a good looking at because

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Speaker 1: if we don't, when we get there, we'll want to

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Speaker 1: shoot ourselves. So IRD have been looking at the cost

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Speaker 1: of stuff and where that money comes from. Now the trouble,

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Speaker 1: and this is not new, is we have more older

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Speaker 1: people needing more money and fewer younger people to work

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Speaker 1: to raise that money to pay those bills. This is

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Speaker 1: more than super I'm talking about. It's health, it's pretty

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Speaker 1: much everything. Currently, sixteen percent of the population is over

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Speaker 1: sixty five. By twenty sixty that's going to be a quarter.

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Speaker 1: So it's going from sixteen percent to twenty five percent. Now.

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Speaker 1: The ird's conclusion people will likely have to pay more

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Speaker 1: tax really is that it? Well, no, Actually, somewhere in

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Speaker 1: the advice they mutters something like, we could always cut

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Speaker 1: costs while bingo there, bingo, bingo, bingo, give the people

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Speaker 1: a prize. Yes, we could. And why that idea is

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Speaker 1: not top of the pile of ideas, I don't know.

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Speaker 1: Because here's what I do know. Most of the money

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Speaker 1: to pay for all of this comes from you and me.

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Speaker 1: Personal tax is over fifty percent of government income. In fact,

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Speaker 1: it's fifty two per Companies pay seventeen percent GSTS twenty

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Speaker 1: five percent, a lot of GSTS from US as well.

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Speaker 1: So in fact, look at our top tax rate thirty

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Speaker 1: nine cents. Add GST on top of that, you're at

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Speaker 1: fifty four percent. Fifty four cents in every dollar. Add

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Speaker 1: the bits and pieces on top you know, acc road

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Speaker 1: user charges. All that top income earners will be parting

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Speaker 1: with fifty six or fifty seven percent of everything they earn.

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Speaker 1: And the ird advice is we're going to need more

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Speaker 1: of that, please, So how much more? And at what

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Speaker 1: point does it become ruinous? At what point do the

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Speaker 1: young bright things move off? Sure? I mean those are

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Speaker 1: the ones that haven't already gone, of course. So let's

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Speaker 1: take stock here for a moment and see where we're at.

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Speaker 1: We're highly taxed. Remember at the other end, we don't

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Speaker 1: have any tax free component in our income tax system.

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Speaker 1: We are a low wage economy. We have a massive

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Speaker 1: savings issue with KII saver at an average of thirty

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Speaker 1: ish thousand dollars in savings, that's all we've got, and

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Speaker 1: a fiscal cliff in a bunch of years where the

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Speaker 1: main idea is will bleed you for even more tax

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Speaker 1: spot The red Flag, So what to do I mean?

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Speaker 1: And how urgently ideas please. For more from the Mic

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Speaker 1: Asking Breakfast, listen live to News Talks at B from

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Speaker 1: six am weekdays, or follow the podcast on iHeartRadio