tax

Show us the detail Colin! (ctd)

While it is evident that as a minor party, the Conservatives will have little effect on fiscal policy, the real issue is where this Party sits on the political spectrum. The Conservatives are quick to pan the disease of ‘entitleitis’ in the left, they are subject to the same malady when it comes to large families.

Not only would the first $20,000 of income be tax free, but there would be an unknown tax free increase for each dependent and he would also support income sharing between spouses. If this were to replace Working for Families, there would still be a huge gap in government revenue. These policies are not costed and the offset suggested “we will make savings” is simply not good enough.

This from Colin Craig’s “Ask Colin” on Conservative Party website – $20 K tax free increased for each dependant  & income splitting- so blow out lot more than $6.4 billion:

Hi Colin

What is your parties view income sharing?

If my wife and I both earned half of my current salary each our household after tax income would be $10,000 greater!

We are being penalised for choosing to have my wife stay at home and raise our 3 under 5 children (rather than sticking them in day care!)

Regards
Brendan

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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 »

Cunliffe all over the place on capital gains tax

The Fairfax embedded Labour fanboi and sometime political reporter finally comes clean on how the MSM like to pick up their pay cheques without doing any work.

The last sentence in the article says Labour is being dragged into the mire by a clever National by forcing it to explain the detail of its policy!

But by dragging Labour down into the mire, explaining detail of its tax plan, National had its best day of the campaign since its official launch 11 days ago.

Seriously, you actually wrote that, it’s on paper, there is a record of it!

Explaining details of policy is now being dragged into the mire!

Reporting on hacked emails, some of them forgeries is high principled good journalism though.

If you want a proper explanation with detail that treats you like a grown up with a brain stop here, if on the other hand you want to know what a bunch of middle aged gossips with not a lot to do thinks well stick to the MSM.

Forget for a moment the rights, wrongs and details of Labour’s capital gains tax. National is cock-a-hoop.

After days and days dominated by dirty politics, it has shifted the focus – for a day at least – and put Labour and its leader, David Cunliffe, on the defensive.

The issue flared after the Press leaders’ debate on Tuesday when Cunliffe ducked answering Prime Minister John Key when he asked if under Labour a family home held in a trust would be hit by a capital gains tax (CGT) – and then claimed it would.

It was Key’s best “hit” of the night, leaving Cunliffe looking awkward and trying to change the topic.

It is a mystery why Cunliffe did not come back in the second half of the debate and call Key out on misrepresenting his policy, after his advisers confirmed the family home in a trust would be exempt.

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Why We Need A Low Flat Tax Political Party

I don’t care about any other policy when I vote than the comparative taxation rates.  The rest of the election issues are woolly woofter nonsense to me.  The lower the tax rate the better, which is counter-intuitive for someone in my industry as the size of my wallet depends entirely on people wanting to find solutions to paying these higher taxes.   Lower tax makes us redundant.

Bill English loves tax.  He must do as in his time as Finance Minister he has not once looked like making the slightest amount of tax reform that New Zealand needs to make it more internationally competitive.

So when ACT released their company rate policy to slash company tax from 28% to 12.5% it was immediately poo-pooed by the farmer from Dipton.

“You can’t open up too big a gap between the company tax rate and the personal tax rate. You just invite people to dodge taxes by setting up structures that make them look like companies instead of people.”

Right.

So the top tax rate on individuals is 33% and the company tax rate in New Zealand now is 28%.  The trust rate is 33%.  There currently is a 5% differential between a company rate and the top individual rate.

Thing is, all his farming mates (including himself) actually can and have paid less taxes by setting up structures that make them look like companies instead of people.  You know, the married couple on a small farm who operate it themselves.  Everyone knows what they are doing when they set up a structure in this way.  It is to pay less tax.

But Bill of course doesn’t want anyone else to be able to do this.

Well I have news for him.  Everyone who can do this already is.  And the salary and wage earners in New Zealand cannot actually tell their bosses they want to be contractors and set up companies so they never will be able to take advantage of it.

ACT of course needs to now come out and say that they have taken the Finance Minister’s fabulous advice and propose that company and individual tax rates should be the same – 12.5%.  That’s what their policy at the last election was and it was a damn good one.  A growing proportion of New Zealanders are not even net taxpayers at all.  Why should the already beaten up middle classes take the brunt of excessive government spending. No matter if it is packaged in Bill English blue or David Parker red?

Cunliffe’s Tax Stazi

image003

eeerr

Will he be embedding them in trade unions that avoid tax or otherwise misappropriate tax?

Labour will have to change the law to achieve this – tax avoidance is still legal.

One of our readers, Bart67, fixed the poster:   Read more »

Labour plans to let local bodies tax you even more

Now this has to be an election winning strategy….for National.

Labour is going to let local councils tax ratepayers even more than they do now under their local body proposals.

Labour plans to reinstate the power for local bodies to raise revenue through extra levies such as a ‘pillow tax’ on visitors and regional petrol taxes.

Labour’s Local Government policy will also require a referendum to be held before any local council amalgamations can go ahead.

Local communities would also have to be consulted before council services were contracted out or privatised.

Local Government spokesman Sua William Sio said Labour was not opposed to amalgamations, but did not believe they were appropriate in all cases.

He said the Auckland supercity model was opposed by many Aucklanders “and designed to take control away from the hands of the many and vest governance in the hands of the few.”

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The majority of NZs want to pay more for their food? Really?

The NZ Herald has a poll result today where the headline claims that Kiwi want a ‘fat tax’.

fattax

Except that was not was originally asked in the poll.

dpoll

The question is rather clumsy. Imagine the result if they had asked “Do you think it is a good idea to tax ALL Kiwis with a sugar tax, increasing food and drink prices across the board, when it is only fat bastards who should be taxed?”.  Read more »

Labour already tried that Winston, wasn’t a winner

Winston Peters is channelling Labour with his silly GST suggestions.

Removing GST from food never worked for Labour, despite them claiming that was a game changer policy.

NZ First has announced a plan to remove GST from food, as part of several policies announced at its party conference.

Leader Winston Peters also said the party wanted GST removed from rates on residential property calling it a “tax on tax deceit”.

“This bold policy aims at the heart of the inequality undermining our society,” Peters said.

Labour had a policy of removing GST from fresh fruit and vegetables going into the 2011 election but it has since been dropped by the party. Last week Peters accused the Conservative Party of plagiarism because it believed the party was lifting its policies.

Peters said the policy was estimated to cost $3 billion a year, and would be funded by a clamp down on “tax evasion and the black economy”, which it estimated to cost $7 billion a year, and what Peters said was “drawing on the projected surplus of billions in the years ahead that result from running a sound economy”.

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The insanity of sugar and fat taxes

Katherine Rich pushes back against the health nazis who want to put a tax on sugar and fat.

Sugar taxes will extract more money from citizens’ wallets for governments but do nothing to curb obesity.

While sugar is seen by some as the current food demon, it’s important to dial back the hysteria for a fact-based discussion.

Sugars are an important part of people’s diets, providing energy for the body and brain. Over the past decade, sucrose consumption in New Zealand has declined, and reports suggest most people consume at moderate levels.

All this while obesity has been rising. The remaining part of the energy-in, energy-out equation is physical activity, but anti-sugar activists prefer to blame food companies.

The food companies just sit there like stunned mullets as their customers and products are demonised. They thought that it would never happen to them if only they just kept quiet while tobacco companies were bashed.

They were wrong.

The inconvenient truth for those wanting to scapegoat full-sugar carbonated drinks – fizzy – is that there has been a dramatic drop in sales in the past 15 years as consumers turn to the growing array of zero calorie and diet fizz options now available.

With Kiwis eating less sugar and drinking less sugary fizz at a time of rising obesity levels, it’s nonsense to pretend fizz taxes are going to magic away the obesity problem.

So long as the health nazis promote the food pyramid that is heavy on carbohydrates and low on proteins then we will continue to get fatter, especially if we don;t exercise to burn those calorie loadings. Taxing sugars and fats won’t work.    Read more »

An economic lesson for Labour they seem to have forgotten

The Labour party wants to raise taxes, add in the Greens tax increases and their fondness for keynesian stimulus spending, you really wonder if they understand basic economics.

You simply cannot tax a nation to prosperity.

Who better to explain the Laffer Curve than the guy who it named after, Arthur Laffer:

The IEA was delighted to host renowned economist Dr Arthur Laffer on 27th June. He was in the UK advocating lower and flatter taxes as the key to economic growth. He suggests high tax rates alter people’s behaviour and act as a disincentive to work.

Laffer Curve from Institute of Economic Affairs on Vimeo.

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