tax

ANZ Bank mocks “Chicken Little” style commentary

The ANZ Bank has made mention in their NZ Market Focus newsletter of 22 April (PDF) that they are not impressed with the “Chicken Little” style commentary over housing.

The “bubble” is not about to burst, and we don’t find “Chicken Little” style commentary useful. That said, New Zealand is facing challenges, as we have highlighted many times before, and with euphoria sky high according to both business and consumer confidence surveys, it’s perhaps timely to remind readers of that. New Zealand is navigating a potent combination of legacy issues from the last business cycle (a weak balance sheet and high debt levels) and opportunity (high commodity prices and growing exposure to Asia) – while addressing a fairly urgent and demanding to-do list in terms of housing shortages and a city rebuild along the way. It’s an outlook fraught with tensions and frictions, and a bun-fight for resources. Net immigration is set to touch a decade high.

[...]

The so-called “bubble” is not about to burst. That’s our opening salvo in response to headlines over the weekend about New Zealand facing an economic disaster. Throw together rising interest rates, overvalued property prices, large household leverage, and the high New Zealand dollar and you have the so-called recipe for a crisis. If that’s the case, then major parts of the world are pretty well cooked. Somehow government debt made it on the list of 12 reasons as to why the bubble will burst – somewhat surprising given that New Zealand’s government debt is in the lower quartile across the OECD. For that matter the article also claims New Zealand is not an agriculture-based economy (“nothing could be further from the truth”).

If you strip out all the positives, the outlook will be negative. There is a reason why interest rates are moving up; the economy is moving forward. If New Zealand is going to have problems in terms of rising interest rates biting into leverage, the world should be very afraid: a host of other countries have interest rates at or near zero and government debt through the stratosphere! A 40-year peak in the terms of trade means the NZD should be high, though we’d still put it in overvalued territory. New Zealand has had an income boom that the article ignores. Yes, New Zealand has some clear issues in the housing arena; they won’t be sorted overnight but at least we’re seeing some action on the supply side. LVR restrictions were bought in precisely to curtail some of those systemic risks bubble trouble can lead to, and the RBNZ has other tools available as well. The OCR will be lifted a second time this week.

Nonetheless some clear challenges cannot be ignored, and it’s timely to remind readers that the NZ economy is going through a material transition – probably one of the most significant in fifty years. We’re moving from legacy issues to opportunity, amidst the demands of rebuilding our second-largest city, housing shortages in our largest city, and an overvalued currency. There will be bumps in the road. Read more »

Doing nothing? Another Cunliffe mistruth proved wrong

David Cunliffe posted this extremely misleading image on Facebook with a claim that National was doing nothing about tax dodgers.

Labourpie

 

Unfortunately for David Cunliffe he has shot his mouth off without first garnering the facts and today Revenue Minister Todd McClay has announced exactly what National is doing to attack tax dodgers.

Speaking at the OECD Cash and Hidden Economy Conference today, Revenue Minister Todd McClay reiterated the Government’s commitment to clamping down on tax evasion and avoidance.

“This is an area the Government has invested heavily in and we are starting to see results,” says Mr McClay.

“In Budget 2010, we invested $120 million in going after tax non-compliance; another $78.4 million was further invested in Budget 2012.”  Read more »

Another Cunliffe cockup

incomptent

David Cunliffe reputation for telling the truth took a battering over his dodgy CV, then his secret trusts and on top of that almost every announcement he has made on policy or comments on government policy has contains mis-truths, deception or lies.

Yesterday was no different when he accused the government of going soft on tax dodgers while at the same time creating the impression that Labour like to hug beneficiaries.

Chester Borrows was quick to kick him in the slats.

Read more »

David Cunliffe’s ongoing lies and deception

incorect

Yesterday David Cunliffe spent an hour on NewstalkZB with Tim Fookes.

I listened so you didn’t have to. It was dreadful but the amount of times David Cunliffe ‘mis-spoke’ or deliberately lied was incredible.

Take his claims on capital gains tax and his attack on farming.

David Cunliffe attacks farmers and lies about CGT David Cunliffe NewstalkZB. "David Cunliffe attacks farmers and lies about CGT"

Read more »

More lies of the left exposed

Lindsay Mitchell exposes the lies of the left over unemployment.

In February the Daily Blog screamed the headline,

EXCLUSIVE: Billions of dollars stolen from the unemployed

which claimed a hundred thousand plus people were being denied an unemployment benefit.

The number of those on average receiving a benefit compared to the number of unemployed in the household survey is now about 130,000 fewer than it was in the late 1990s.

The missing 130,000 are the reason why so many social agencies are being inundated for help for food, clothing, shelter despite the so-called recovery in the economy over the last year…
tax cuts for the rich have been paid for by denying entitlements to the poorest and most vulnerable is theft from working people of about a billion dollars a year. It is time to get angry.

The tax cuts for the rich have been paid for by denying entitlements to the poorest and most vulnerable is theft from working people of about a billion dollars a year. It is time to get angry.

Then Labour’s Chief of Staff, Matt McCarten, still writing for the Herald on Sunday, picked up the accusation:  Read more »

Map of the day

Tax Time

 

This map indicates the time, in hours per year, it takes to prepare, file, and pay (or withhold) three major types of taxes: the corporate income tax, the value added or sales tax, and labor taxes, including payroll taxes and social security contributions.

Hosking points out the obvious flaws in Labour’s wood policy

Mike Hosking sees right through Labour’s wood policy…another that they will no doubt claim is a “game changer”.

In what the Labour Party will hope is some sort of turning point in their poll run, they’ve started talking wood. They’re pro-wood. They’re getting into and involved in the wood industry.

The potential upside of this is it differentiates them from the Government. It gives them a point of difference. What they’re up to is incentivising the industry – there will be tax breaks for it.

Now the immediate problem I had with the idea is that it originated from their manufacturing inquiry they held a couple of years ago. That was the cross party ‘crisis’ inquiry where Labour, the Greens and NZ First wandered around the country listening to people complain about manufacturing. The big problem being that while they were all in a room together wringing their hands and moaning, manufacturing was going gang busters. Manufacturing has been expanding for the past 18 months in a row and across all sectors. Manufacturing levels are at record highs.

The single best thing Labour could do is declare that the wood industry in crisis and hold an investigation into it.  Read more »

Guest Post – Reclaiming the left

This guest post was emailed last night. I don’t agree with everything in here, but far be it from me to filter the voices of those on the left frustrated and zero traction.
How To Win It From Here – by Reclaiming the Left
So, it’s a bad time to be a leftie. Labour looks like losing the “election that couldn’t be lost.” And losing it badly. I had high hopes for Cunliffe, and I liked Goff too. Sigh.
I’ve been pissed off with a lot of the left for ages. There’s a lot of squabbling, but more importantly, very little focus.
Let’s get some things straight. Socialism is about the collective, not individuals or interest groups. Socialism is not about hippy bullshit. Many on the left have forgotten that. However, if we get back to our roots, and smash a few big-hitting policies straight off the bat, we might just do it.
The Big One: Work for the Dole
WfD is the best socialist policy there is. Everyone has a right to a job, but the government has the right to your labour as well. I’d do WfD right; good pay ($15/hr, 40hrs) with maybe 3 months on an infrastructure project then 1 month training on reduced pay. That sort of cycle would give people a chance to get back into the labour market easily enough. Yeah, it’d cost a bit (more on that later) but it’d break welfare dependency because it would turn the dole into a “community wage.”
And if you refuse it, and don’t have a disability? You get nothing.
The Next Big One: Revitalising the Provinces
Small town NZ is dying. Auckland is turning into a cancer, a tumour too big for the rest of the country to handle. Let’s revitalise the provinces – (1) special economic zones (e.g. zero corporate tax!) for places like Tokoroa and Kawerau, (2) moving some bureaucratic jobs into the provinces e.g. WINZ, (3) using WfD infrastructure projects, and (4) making sure all overseas immigrants settle in smalltowns. Try outmanouevring that, National.  Read more »

Maybe we should have a ‘luvvies tax’ here

There is some merit in implementing a ‘luvvies tax’ like that suggested by Toby Young at the Telegraph after a bunch of ‘luvvies’ made a video chastising the government for not implementing a Tobin Tax.

[T]he most objectionable thing about this video is the notion that a bunch of luvvies possess the moral authority to chastise bankers, politicians and the rest of us for not giving even more money to the European Union. David Yates, the film’s director, was at the helm for the last four Harry Potter movies and has a “first-look” deal with Warner Bros. I would conservatively estimate his total earnings over the last decade at over £25 million. Very few “greedy” bankers earn that kind of money. If Yates and other Hollywood types are genuinely concerned about “extreme poverty” and “climate change”, why not campaign for a Luvvie Tax? Better yet, why not cut out the middle man and simply donate 0.5 per cent of their earnings directly to the EU? I’m sure José Baroso can find a good use for it. A new fleet of Mercedes S400 BlueHybrids for European Commissioners, perhaps.

I’ve never understood why showbusiness types think their political views should be taken seriously simply by virtue of their fame and fortune. What insight do members of the entertainment industry possess that members of the financial services industry lack? What’s the chain of reasoning here? I’m on telly a lot, therefore I’m wise? You may disagree with the Chancellor’s views about the Financial Transaction Tax, but at least he’s a member of the elected government of Great Britain and Northern Ireland. Who elected Bill Nighy to speak for the people of Britain? I mean, apart from Richard Curtis?

Do me a favour Nighy, Yates and all the other Labour luvvies involved in this “campaign”. If you want to create jobs, take early retirement.  Read more »

Let’s have a living tax on companies

David Farrar discusses a “living tax” proposal for offshore companies who pay little or no tax in New Zealand…like APN and Fairfax.

This old fashioned concept of paying tax on profit must be disposed of. We should demand a fair tax system. Let’s calling it a living tax – the level of tax a company should pay so that it no longer feels wretched and is helping fund a civilised society.

I think a 15% tax on revenue would be a fair living tax.  Both the Herald and the Dom Post have repeatedly run stories and editorials comparing tax to turnover, not profit. So we should start the living tax campaign with them. Here’s how it would work:  Read more »