The major proportions of Indian population in NZ are new migrants who arrived to NZ from late 1990’s and early 2000’s. During these years number of Indians arriving in NZ has increased with most coming on student visas. They have successfully transitioned from students to citizens in 7-8 years and working full time. Partners of these new migrants also have joined their other half in supporting the family by taking up jobs. Most Kiwi-Indians would favour tax cuts as opposed to welfare payments because of this very reason. Once the income levels of households increase, they usually do not qualify for any welfare benefits like accommodation benefits, community services card, etc. and feel the pinch by way of increased taxes on total household income.
Increased tax deductions put these families at disadvantage as they have to pay more tax on total income earned at the same time they do not get the necessary benefits associated which is a double whammy for them. Reducing the tax rates on total income earned is one of the solutions which will work in favour of Kiwi-Indian families who want to get ahead on par with other prosperous countrymen.
Social spending by way of more welfare benefits will be a de-motivating factor for people who want to work or start new businesses. Once people start working and getting paid will lead to giving back by way of expenditure in retail, grocery and other items leading to overall development of economy. Money comes back to the government by way of GST and other taxes leading to increased spending by the government.
On the other hand increased payments for welfare will create a dependency syndrome where people do not want to work and feel de-motivated to work. They will have a false sense of security that money will be available at the end of the week and will spend on things not essential. The real worth of wealth is lost and people will find ways to avoid work. This will lead to a generation of dependency which is detrimental to the whole society.
Social spending may play a part in the decision making of Kiwi-Indians in the next 20 years when these migrants will grow old and may need social benefits for health and pension schemes. At present the proportion of Kiwi-Indians needing these welfare schemes is very small so the majority would favour tax cuts which will make more money available for them to spend on housing, groceries, schooling and healthcare.
We can say unequivocally that Kiwi-Indians will look up to a party which will deliver on this promise of tax cuts which will be more beneficial for them not only in the short term but also in the long period as they establish their working culture as the main cause for survival.
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