One of the big underlying problems in our political system is the prevalence of short-term thinking, most usually seen in the periodic massive infrastructure failures at a local government level caused by them skimping on maintenance to Keep Rates Low. But the new government has given us a new example, with their unexpected plans to repeal smokefree legislation. While being blamed on Winston - a guy named after a brand of cancer-sticks - National likes it because they need the money to fund their promised handouts to landlords. But as Bernard Hickey points out, that extra revenue has a cost, and it is enormous:
But the cost to the taxpayers and citizens in purely financial terms, let alone the estimated loss of 580,000 Health Adjusted Life Years (HALYs), is set to surpass $10 billion. For every dollar in tax cuts delivered to landlords and salary earners by pushing tobacco taxes back up, Treasury has estimated health and lost productivity costs of up to 20 dollars.So for a few hundred million a year in extra tobacco tax, National is going to stick us with 4000 - 9000 dead, and $11 billion in other costs. Apparently, this is what they call "fiscal responsibility". Instead, it just looks like cold-blooded murder.[...]
Treasury estimated in 2021 that the changes in smoking laws and regulations designed to slash smoking rates would create $5.25 billion in health savings over time and $5.88 billion in extra income from productivity benefits. Reversing those changes would reimpose those costs.
