Their version uses median income instead of minimum wage as the metric for employee contributions, but the core concept of mandatory savings instead of taxation for low earners is a great idea. It is a shame that there is a such a vitriolic reaction to Rogernomics on the left-wing these days, because 'tax-free' is an easy sell to working people and it would be much more progressive than the current tax system so it aligns with left-wing values.
A savings not taxation model is probably easier sold to align with right-wing values, but the history of NZ politics is generally that radical new economic policy is implemented by Labour then preserved by National. From a right-wing perspective it promotes individual choice, enables greater market competition in the welfare sector, and makes people less directly dependent on the state.
Actually, there are various forms of superannuation funding. Impose and transfer; impose and set up a fund for current retirees, and finally the mandatory (tax?, security contributions?) savings system. That is what Roger Douglas describes. I wrote about the first, the impose the tax and transfer to those who are entitled.
This sounds a lot like Robert MacCulloch and Roger Douglas' How to Change the Welfare State from a Taxation to a Savings Based Model paper. https://www.downtoearth.kiwi/post/national-and-labour-have-created-a-nz-fiscal-crisis-there-is-only-way-out-here-it-is-in-joint-wor
Their version uses median income instead of minimum wage as the metric for employee contributions, but the core concept of mandatory savings instead of taxation for low earners is a great idea. It is a shame that there is a such a vitriolic reaction to Rogernomics on the left-wing these days, because 'tax-free' is an easy sell to working people and it would be much more progressive than the current tax system so it aligns with left-wing values.
A savings not taxation model is probably easier sold to align with right-wing values, but the history of NZ politics is generally that radical new economic policy is implemented by Labour then preserved by National. From a right-wing perspective it promotes individual choice, enables greater market competition in the welfare sector, and makes people less directly dependent on the state.
Actually, there are various forms of superannuation funding. Impose and transfer; impose and set up a fund for current retirees, and finally the mandatory (tax?, security contributions?) savings system. That is what Roger Douglas describes. I wrote about the first, the impose the tax and transfer to those who are entitled.