The present social welfare system is creating some kind of dependency on the

The present social welfare system is creating some

This preview shows page 155 - 157 out of 241 pages.

The present social welfare system is creating some kind of dependency on the state for help.”(E5) “I think the DPB (domestic purpose benefit) should be completely wiped out because too many people are using it as an excuse for not going to work. As for the dole (unemployment benefits), it should be wiped out completely. The social welfare is causing an absolute dependency on the government for help. For example, the Auckland Mission next door is an example. These people are drinking away their welfare benefit and yet the Auckland Mission is going on TV asking the public to help feed and clothe them. It is a management of money problem.” (E4) The above accounts showed that cultural underpinnings can help explain an ethnic group’s preferences for certain types of tax spending. In this case, the strong dissatisfaction towards welfare spending by the European sample reflects their cultural
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142 values of individualism and masculinity, where they prize achievement obtained through hard work and self reliance. This adds to the existing literature that taxpayers’ willingness to contribute to taxes may be linked to their preference for tax spending brought about from their cultural traits. Notwithstanding, the government should be mindful of the ethnic groups’ preferences towards the different types of tax spending. Given the cultural diversity of the New Zealand population, the government has to manage their tax spending to satisfy the different ethnic groups’ needs. In addition, the New Zealand government needs to promote the social benefits of the different tax spending to the European SME operators, so that they are less inclined not to pay taxes despite their dislike towards welfare spending. 8.5 Tax payments and tax spending perceptions of the Pacific group Figure 8.1 shows that more Pacific operators had tax payment difficulties compared to any other groups in this study. Their tax payment difficulty was related to their poor accounting systems (see Chapter 6, section 6.4.4), lack of cash-flow management and planning, and contributions made to extended families and churches (see Chapter 3, section 3.6): “Managing cash flows was an issue for us. At the start we did not have any budget, and what we did was money was coming in and money was going out and we didn’t track where the money was going. Like we didn’t keep money for PAYE, or keep money for tax or for GST and then cash flow suffered. You then had to inject some of the family money into the business to keep going . . . We were just naïve because we put all the tax payments on the back burner. We did not know about the cash flow analysis and no one actually told us and we were just thumbing in as best as we can.” (P1) “Pacific businesses are similar like the Maori like the family ties. Family pressure, sending money home and the church impacts on their cash flows does put pressure on a lot of them.” (BE6) “I guess historically in the Pacific way, a lot of that is based on “gifts” in the society. We have been told that it is better to give than to receive and often times it will be done at your own expense. The
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  • Fall '16
  • tax compliance, SME Operators

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