Income tax

Will Labour tax us even more?

Grant Robertson won’t commit to confirming whether or not Labour will go into the 2017 election with tax increases on the policy platform.

But would Labour change the tax system to help pay for its promises? And would it address wealth inequality?

“We have rule out going into the 2017 election with a capital gains tax but that doesn’t mean I think the tax system is correct or balanced. I think we can create a fairer system, particularly one that cracks down on speculation in the property market.”

Labour had gone into the last two elections promising to lift the top personal rate “and we are looking closely again at that”, he said.   Read more »

Tax Cheat Paul Staples loses his job

Tax cheat Paul Staples leaves the Manukau District Court with his wife jean Staples

JUST WHEN you thought things couldn’t get any worse for tax cheat Paul Staples, they have.

The 52-year-old former bankrupt and ex-policeman appears in the Manukau District Court on Thursday for sentencing on charges of forgery, tax evasion and knowingly providing false information to Inland Revenue – offences which carry maximum penalties of up to 10 years imprisonment.

In the meantime, Staples has suffered another setback – he’s lost his job with Panmure-based company Eastside Security Ltd.

Owner Gary Moore confirmed yesterday that Staples was no longer working for the company.

He said Staples had been dismissed immediately after he had been told about the criminal charges he was facing.

Between September 2008 and August 2011, Staples filed 27 fraudulent income tax and bogus GST returns with IRD under three different companies.

During that time he also claimed a salary as a shareholder of a company when he wasn’t one, falsified sale and purchase agreements and legal documents and registered companies when he was a bankrupt.

Inland Revenue has assessed the debt at around $320,000, but with penalties and interest it is likely to run to well over half a million dollars.   Read more »

Are differing tax brackets – based on earnings – a basic form of human rights discrimination?

We have, as most countries do, a variable tax regime. Tax is charged on personal earnings in brackets based on the gross annual income. Earn less, pay less. Earn more – pay more.

The scale looks like this:

Earn upto $14,000 and pay 10.5c tax in the dollar

$14,001 to $48,000 and pay $17.5c tax in the dollar

$48,001 to $70,000 and pay $30 c tax in the dollar

$70,001 and over pay 33c tax in the dollar

So lets take a look at what that means:

Person A: making $25,000 per annum will pay $3395 tax per annum and take home $21,605 a year (total 15.7% of income).

Person B: on $48,000 per annum will pay $7,420 tax per annum and take home $40, 580 a year (total 18.2% of income)

Person C: on $70,000 per annum will pay $14,020 (total 20% of income)

Person D: on $100,000 per annum will pay $23,920 (total 23.9% of income).

Person E: on $170,000 per annum will pay $47,020 (total 27.6% of income)

As you can see – the people on bigger incomes are paying vastly more tax. Person E on $170,000 is paying 6.3 times the amount paid by Person B on $48,000 despite earning only 3.5 times the amount of Person B.

Person D is paying 3.2 times the tax that Person B is paying despite the income being twice the amount. Person’s D and E get thumped.

During the reign of Helen Clark the top tax rate on personal income was a whopping 39% although these days its 33%. So those top two peep’s would have been paying a lot more.   Read more »

Why is it that Labour always thinks of new taxes first?

Labour never seems to think about tax cuts, or cuts to “entitlements”, instead they always look to increasing taxes or finding new taxes.

Richard Harman out lines some inside gossip that Labour are planning to tax the dead again.

Labour is looking for a replacement for its capital gains tax.

And one influential former advisor is advocating a wealth tax, particularly the return of death duties.

Instead of Bring Back the Dead…labour seem to be wanting to Bring Back Death Duties.     Read more »

Will Labour run on a Financial Transaction Tax?

Labour have a finance spokesman who has never worked in the real world, and basically has very little idea about finance.

It wouldn’t be surprising if he did what the Democrats are doing now they are in opposition, and promote a Financial Transaction Tax.

To pay for the plan, the U.S. would impose what Van Hollen called a tiny fee on market transactions, of 0.1%. A Democratic aide said the fee would apply to any buy or sell transactions, and include stocks, bonds and derivatives. The plan would also limit tax deductions on CEO pay above $1 million.

So far this type of tax has only been promoted by the looney left, in the form of the Alliance and Jim Anderton, Mana, and the Greens.

5. Financial Transaction Tax

The Green Party will:

  1. Involve New Zealand with the group of countries working to agree on a tax on international currency movements, to set up a fund to provide capital for poor countries to improve their social and environmental wellbeing. This would discourage currency speculation without being high enough to impede genuine trade.

Read more »

New study shows that ‘the rich’ don’t just pay their ‘fair share,’ they pay almost everybody’s share

cbo11

A US study has shown that the claims of the leftwing that the rich should pay even more tax as being just and fair in the world is based on lies.

They already do pay more than their fair share, in fact they pay almost everybody’s share.

[T]he major finding of the CBO report is that the households in the top income quintile are the real “net payers” of the US economy. The average household in the top one-fifth of American households by income paid $57,500 in federal taxes in 2011, received $11,000 in government transfers, and therefore made a net positive contribution of $46,500. The second-highest income quintile basically just barely covers its transfer payments, so it’s really the top 20% of “net payer” households that are financing transfer payments to the entire bottom 60% AND financing the non-financed operations of the entire federal government.

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Alex Swney charged with $2m tax evasion

Alex Swney, former head of Heart of the City appears to have been falsifying invoices and absconding from paying tax.

Predictably the long arm of the Inland Revenue has caught up with him.

Auckland’s Heart of the City chief executive Alex Swney has been charged with tax evasion totalling almost $2 million.

Swney, 57, who heads the publicly funded organisation, faces 39 charges laid by the Inland Revenue Department alleging he did not pay $1.8 million in tax. Penalties of $1.4 million was also allegedly owed.

He appeared in Auckland District Court today where he denied all the charges and his lawyer David Jones, QC, did not apply for continuation of name suppression.

Mr Jones indicated the matter would progress to a judge-alone trial.

Heart of the City has income tax exemption on the basis that it was created to develop or increase amenities for the Auckland public.   Read more »

Facts matter Josie

Yesterday on The Cauldron, Josie Pagani and I set about each other over taxation.

Her claims were that the “poor” pay more in tax than anyone else…my contention was she was talking rubbish.

Lindsay Mitchell points out who was right and who was wrong.

The topic for discussion was tax cuts. Cam said that half of people already pay no tax (or words to that effect). That tax cuts for them would be ‘smoke and mirrors’.

Josie Pagani mounted an absolute denial saying that low and middle income people pay more tax than wealthier people relative to their income.

Time to remind ourselves that

…households earning under $60,000 a year – which is half of all households – are expected to pay 11 per cent of income tax. “When we take income support payments into account, as a group they will actually pay no net income tax at all,” Mr English says. Read more »

Mana economic media release (yes, I know)

Before you carry on reading, I need to warn you:  this is going to hurt your head:

MANA Movement Economic Justice spokesperson John Minto is calling for a radical overhaul of New Zealand’s taxation system with calculations showing that a minimum wage worker pays a ten times higher tax rate than the Prime Minister.

Minimum wage worker 28% tax

Prime Minister 2.8% tax

The minimum wage worker on 40 hours per week earns $29,640 and pays $4,207 in income tax and $4,149.60 in GST giving a total tax of $8,356.60 or 28% of income.

On the other hand the Prime Minister earns $428,000 from his PM’s salary along with this year’s $5,000,000 increase in his wealth (according to NBR’s rich list) which gives him a total income of $5,428,000. On this total income he pays just $132,160 in income tax and approximately $21,400 in GST giving a total tax of $153,560 or 2.8% of income.

This is a national embarrassment. Those least able to pay are under a heavy tax burden while the super-rich pay peanuts.

The National government and its attack bloggers refer to the working poor as scum, bludgers and ferals but it’s clear the real problem is with the top 1% of income earners who get all the benefits of taxpayer funded facilities and services but don’t pull their weight paying for them.

Cleaners, fast-food workers, hospitality workers and security guards are all heavily subsidising the lifestyles of the superrich.

These figures show we need an overhaul of our tax system so the Prime Minister and his rich-list colleagues pay their fair share.

Actually, only one attack blogger refers to the working poor as scum, bludgers and ferals.  I have yet to see the Government use those words.  And no, I’m not “theirs”.  I can assure you, they have no control over me.  Nobody does.   Read more »

How many Tax Commissars and Stasi operatives will Labour need?

Labour's new tax commissars line up outside IRD's Stasi HQ

Labour’s new tax commissars line up outside IRD’s Stasi HQ

Labour’s newest great idea is to establish a Tax Stasi, filled with Tax Commissars who will be “embedded” in businesses that Labour thinks are bastards.

They will be observing what is going on and reporting back to the Tax Stasi Gruppenfuhrer

This is an outrage…you can’t tell me that once the Tax Stasi have finished doing over multi-nationals that Labour won’t suddenly decide to implement more snitches and stasi agents and lower the threshold and rules down to businesses with say $30 million turnover.

What is more of an outrage is labour have exempted banks from the snoopy activities of having Tax Stasi agents roaming the corridors looking for evasion.

If National had done something like that Labour would be accusing them of cosying up to bankers, and corporate cronyism…like they do now over insurance companies?

You do have to wonder though if one of labour’s aor David Cunliffe’s major secret donors is bank or someone associated with banks.

There are serious questions though…surely if they are targeting tax dodgers and rorters then the unions should have Tax Commissars assigned to them, in particular Unite Union, with their history of non-compliance. Or will Labour except unions from having Tax Stasi Agents sitting in their offices.

In other matters you can tell they don’t know what to do about almost everything because they have retained their promise for us to trust them, they know what they are doing, look we will appoint an Expert Panel.

Expert Panel : An Expert Panel will be established to deal with issues that are technical in nature and involve areas where a high degree of specialised knowledge is required before a final decision can be reached.

This policy will raise an additional $25 million in its first year, growing in outyears to reach $1 billion a year by 2020/21.

Read more »