Latest news with #youngparents
RNZ News
28-05-2025
- Business
- RNZ News
Benefit sanctions will mean young parents 'end up on the street', Māori youth service says
they will mean people 'end up on the street'. E Tipu E Rea Whānau Services mana whakahaere (general manager) Cindy Kawana says young parents have been completely left out of this year's Budget. Photo: Supplied / E Tipu E Rea Whānau Services A kaupapa Māori youth service says this year's Budget delivers "nothing" for young parents, and new sanctions on benefits for rangatahi could push them into unsafe situations and homelessness. With a kaupapa Māori framework, E Tipu E Rea Whānau Services provides dedicated support to mātua taiohi (young parents) and their whānau across crisis, employment, health and more. Mana whakahaere (general manager) Cindy Kawana said the whānau it works with have been completely left out of this year's Budget. "There's nothing in it for our young whānau or for rangatahi," she said. "Rangatahi have missed out - but those that are parents have missed out more. All we've seen are punitive responses to youth." On Budget Day, Minister for Social Development Louise Upston announced the government would means-test benefits for 18- and 19-year-olds against their parents' income from 2027. Kawana said this policy would have devastating impacts. "It's just another way of denying their place in society. They're adult enough to join the army, they're adult enough to vote, but they aren't adult enough to get financial support from the government when they need it ... That just seems crazy." E Tipu E Rea run many services offering dedicated support to uplift young whānau - including their Tūpuna Parenting kaupapa. Photo: Supplied / E Tipu E Rea Whānau Services Kawana said the policy overlooks the complex realities rangatahi face and assumes a level of family support that often doesn't not exist. "It's a really privileged position to be able to think that all of the 18- and 19-year-olds, and specifically those our experiences are with, have relationships with their parents, that even if their parents could afford to support them, [they] would support them," she said. "That's a really privileged position for the government to be sitting in." She said the policy also ignores complex whānau dynamics, such as children returning from state care to rebuild family relationships. "At 18 they're told, 'You can't go on the benefit. Your parents have to support you'. We know what will happen to those kids. They will be living on the street." Kawana said the consequences are visible now through the housing crisis. "What's happening right now with housing and emergency housing - our kids live on the streets. Our māmā's with babies live on the streets. These are direct consequences of the government trying to call back money because we have an unfair economic system going on. "And it's always those, the least that can afford it, that are penalised, forgotten and hidden in the statistical data." She said the sanctions would cause more harm to already struggling whānau. "Some of our young whānau are looking for support - not just financial, but a safe place to stay. What happens when they can't get a benefit? We know what will happen. They'll go out on the street, or they'll stay in really, really dysfunctional, unsafe situations." Kawana criticised the government's messaging around personal responsibility, saying it ignores structural inequality and real-life experiences of tamariki in poverty. Minister for Social Development Louise Upston says the government isn't "willing to watch any young New Zealanders get stuck on the benefit". Photo: RNZ / Samuel Rillstone "We don't means-test superannuation. Why is it different for rangatahi at the start of their lives? We have millionaires getting taxpayer money. And yet young people are told they don't deserve support?" She said young parents, especially Māori and Pasifika, are often "talked about, but never talked to". "Youth might be asked to the table sometimes. But young māmā and pāpā with pēpi - they're left out completely." Investment should focus on prevention and support, Kawana said. "As a society, we do have a responsibility for our youth. The state has intervened in many of their lives - and done a terrible job for some. We can't now turn around and say: 'We owe you nothing'. "Recognise our mātua taiohi as whānau in their own right. Support them financially, emotionally, practically - so that their tamariki thrive." In response, Minister for Social Development Louise Upston said the welfare system should support those who need it most - but "we aren't willing to watch any young New Zealanders get stuck on the benefit". "We don't accept that a life on welfare is as good as it gets for any of our young people," she said. "That's why our government is taking steps to make sure work, training or study is the focus for all young people." Upston said the Budget prioritised funding for community coaches, bonus payments, and personalised plans to "hold young people accountable" while supporting them with job coaching and needs assessments. The final decisions on the parental income test will be made later this year, with considerations for hardship and caregiver situations. Minister for Māori Development and Associate Minister of Housing Tama Potaka. Photo: RNZ / Samuel Rillstone Minister for Māori Development and Associate Minister of Housing Tama Potaka said it was "wrong to say the government doesn't care about housing for vulnerable young people". "Our housing policy has lifted hundreds of Māori whānau and tamariki out of dire emergency housing and into better homes," he said. "That can mean a world of difference for young people in terms of better health, regular school attendance or maintaining employment." He said the government wants rangatahi to grow their education at kura or follow their own ambitions through mahi or business enterprise. "The government is investing in rangatahi Māori through the overall increase in education funding as well as extra investment in Māori education specifically, including funding for kura, te reo Māori proficiency and training for kaiako. "Our aspirations are the same as many parents across the motu: we want all rangatahi to make the most of their talents. That's why we're saying 18- and 19-year-olds who aren't working or studying should be supported by their parents or guardians, not the taxpayer." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Forbes
14-05-2025
- Business
- Forbes
Families With Children Deserve Tax Relief—But A Growing Economy Too
Expectant parents may be disappointed that a $5,000 baby bonus—which President Trump himself said 'sounds like a good idea'—hasn't found a place in the massive tax and budget package now winding its way through Congress. The current draft of the 'One Big, Beautiful Bill' would create tax-advantaged savings accounts that can be opened for newborns, and a pilot program for the next three years, during which the federal government would contribute $1,000 to kick-start each account. Accrued funds would then be accessible for the child when he or she turns 18 to help pay for higher education, to buy a house and other eligible expenses. That may be a help for parents concerned about their kids' futures, but doesn't feel like the same windfall as an immediate $5,000 baby bonus that was floated last month. Yet young parents have more at stake in the tax code than maximizing payouts related to the immediate years when they have young children. If bigger short-term credits or dedication came at the expense of higher marginal income tax rates, higher corporate tax rates and slower economic growth, young parents would find that they are still losers in the deal. Family together at home Higher marginal rates on top earners may sound like a rich and worthy source of tax dollars, but these top earners also tend to be the drivers of economic growth and job creation. Most small businesses are managed as 'pass-through' tax entities, which means higher marginal rates would hit them, hurting workers and job creation broadly. High marginal tax rates discourage work, investment, and entrepreneurship—the very behaviors that drive economic growth and benefit the economy broadly. The corporate tax rate cuts in the 2017 Tax Cuts and Jobs Act (TCJA) resulted in rising real wages, more generous benefits (including for paid time off, a critical benefit for families with young children), and more and better job opportunities for workers. This kind of growing, dynamic economy, more than short-lived tax breaks, will provide families with financial stability over the long term. Lana Pol, who runs a family-owned trucking company in Iowa with 68 employees, explained what the 2017 tax cuts meant for businesses like hers: 'Before the tax cuts, everybody was struggling at that point, as far as small businesses. The confidence wasn't there. When these tax cuts came along, we saw a tremendous increase in people's confidence. Everything seemed to start flowing a lot better, cash flow was better, and just knowing that there was help out there.' A better economy for entrepreneurs and businesses of all sizes might not seem like a boon to families with small children, but will dictate the economic environment that surrounds them. Most families' current budget woes stem from steeply higher living costs, which are the result of inflation, restrictive housing and energy policies, and other growth-crushing regulations left over from the Biden era. Simply by blocking the Biden administration's unfinalized rules, the Trump administration saved the average family of four an estimated $2,100 over the next decade. Rolling back additional red tape will continue to reduce energy and compliance costs, bringing downward pressure on the costs of most goods and services. Families will also benefit from the administration's changes in education policy. Returning funds to states and localities—and even better to parents themselves—will not only shake up under-performing government-run schools and help kids learn more, but also free parents from overpaying for housing in purportedly 'good' school districts, easing housing costs and alleviating a variety of headaches for parents. Reducing taxes on families should remain a priority during negotiations for this tax and budget bill. Hitting already cash-strapped families with a massive reduction in their child tax credit—it was doubled by the TCJA—would cause real hardship. If Congress fails to act and allows the resumption of the pre-2017 tax system, the average taxpayer will see a 22% tax hike. A family of four making $80,610 (the median U.S. income) would see a $1,695 tax increase. The current version of the "One, Big, Beautiful Bill" includes an expanded Child Tax Credit of an additional $1,500 over the next three years, which would provide a big boost to families with the youngest children. Tough choices always have to be made during tax negotiations—especially when we have to fund a government of this enormous size. Families with children have a big stake in this debate, that goes far beyond any single baby bonus or tax credit. They need a tax system that creates a growing economy with more opportunities and affordable living for the long term. Carrie Lukas, a mother of five, is president of Independent Women.
