Note: The New Zealand conservative party is called the National Party, but their policies are center-right, at least on fiscal issues.
The Wall Street Journal reports on a stunning victory.
John Key is set to lead New Zealand for a third consecutive term after official results showed his party garnered 48% of the national vote, and would likely end up with 61 seats in a 121-member Parliament.
[…]David Cunliffe, leader of the main opposition Labour Party, conceded defeat late Saturday. The Labour Party picked up 25% of the overall vote, according to the Electoral Commission, while the Green Party, always thought to be its likeliest coalition partner, won 10%.
The 53-year-old Mr. Key has helped steer New Zealand to a level of prosperity rarely found in developed countries since the global financial crisis, campaigning against a backdrop of the strongest economic growth in a decade.
[…]Mr. Key’s victory was stronger than opinion polls were predicting. Meanwhile, Labour’s weak showing was the worst since the 1920s, prompting speculation of a possible change in leadership, though Mr. Cunliffe said he had no plans to resign. “I don’t believe that rotating the leaders is the key to changing and upgrading our party,” he said Sunday in a television interview. “If I did, I would simply stand down now.”
The University of Otago’s Mr. Edwards said it would be difficult for Mr. Cunliffe to reassert his authority after Labour’s poor result, but added that the party still had no obvious replacement.
The Green party’s support was little changed from 2011, despite opinion polls predicting it could win as much as 14% of the vote. Green Party Co-leader Metiria Turei said Sunday the party had consolidated its 2011 result and held on to its 10% support even though the country had swung to the right.
The National Party is not achieving this economic growth by raising taxes on individuals and job creators – New Zealand has the second lowest taxes in the industrialized world.
Many countries have been working hard to improve their tax codes. New Zealand is a good example of one of those countries. In a 2010 presentation, the chief economist of the New Zealand Treasury stated, “Global trends in corporate and personal taxes are making New Zealand’s system less internationally competitive.” In response to these global trends, New Zealand cut its top marginal income tax rate from 38 percent to 33 percent, shifted to a greater reliance on the goods and services tax, and cut their corporate tax rate to 28 percent from 30 percent. This followed a shift to a territorial tax system in 2009. New Zealand added these changes to a tax system that already had multiple competitive features, including no inheritance tax, no general capital gains tax, and no payroll taxes.
In a world where businesses, people, and money can move with relative ease, having a competitive tax code has become even more important to economic success. The example set by New Zealand and other reformist countries shows the many ways countries can improve their uncompetitive tax codes.
Compare that with the United States which is stuck down at 30 out of 32 countries! We have a lower median income and labor force participation than we did five years ago, despite packing over NINE TRILLION dollars onto the national debt.
John Key isn’t packing trillions onto his country’s national debt they are set to balance the budget in the coming year. And more than the balance budget, he is also trying to privatize bloated, inefficient state-run companies. Imagine what we could do if we privatized the USPS, the departments of motor vehicles and AMTRAK. Just cut the fat out completely.
So now we have conservative majority governments in Canada (Harper), Australia (Abbott) and New Zealand (Key).