Taxation

Typical socialists, they always want a subsidy

Why do socialists always think subsidies are a solution?

Keeping the Capital Connection running could cost ratepayers less than previously thought.

An internal Ministry of Transport memo released under the Official Information Act casts doubt on the amount of public money needed to keep the commuter service between Palmerston North and Wellington going.

KiwiRail has said it will cease running the train from July this year and has no plan in place for a replacement service.

For the Capital Connection to continue, the two regional councils – Horizons and Greater Wellington – need to convince the New Zealand Transport Agency to shift the Connection to a Wellington Metro service, which would mean it could receive a subsidy from the two councils and NZTA.

The Ministry of Transport report estimates the cost of the subsidy needed at about $250,000 per annum.

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Angry Andy thinks providing Iwi with tax free status is a winning move…

tax-free

The Taxpayers’ Union is querying Labour Party leader Andrew Little’s comments at Waitangi that New Zealand should consider allowing Maori to make their own laws, including tax laws, in reference to rules applicable to Native American tribal lands. Jordan Williams, Executive Director of the Taxpayers’ Union says:

“Like many New Zealanders, Mr Little may be surprised to learn that iwi do not currently pay income tax, even on profits of their commercial investments.Read more »

Lawrence Yule wants more of your money

There is a storm coming for local councillors, and for some, the clouds are only going to get darker, particularly as they start eyeing up next year’s local government elections.

Local Government New Zealand today released a discussion paper about how they can get hold of more of your money. This is all being spun on the basis that more funding is required to meet the increased demand for services and infrastructure.

Quick out of the blocks was the Taxpayers Union who pumped out a release LGNZ Push For Local Income Taxes, Fuel Taxes and Regional GST.

Jordan Williams slammed the head of Local Government Lawrence Yule saying

Mr Yule is telling the public that the goal isn’t to increase the overall tax burden, but today he released a report, not on ways to save money, but on ways to tax more.

And that’s the key point.

The Local Government Funding Review says that “the right incentives and resources must be in place to enable councils to drive growth”.   Read more »

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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.

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Tax the Fat Bastard not the Fat

Celebrity Chef Jamie Oliver wants to tax sugar because sugar makes people fat bastards and costs the taxpayer.

Sugary foods risk causing a public health crisis similar to smoking and should be taxed in the same way as tobacco, Jamie Oliver has said.

The television chef said sugar was “definitely the next evil” and should be targeted because of the burden it was placing on the NHS.

He said he agreed with France’s decision to impose a tax on sugary drinks and believes Britain should follow.

The problem with this is that such a broad based tax is very difficult to administer and has had little impact.   Read more »

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Cut the corporate welfare and lower taxes before Australia

The IRD is warning the government will have to cut corporate taxes if Australia lowers theirs.

What a good idea.

Inland Revenue has warned the Government may have to consider cutting the company tax rate next year if Australia drops its rate.

In a briefing to Revenue Minister Todd McClay, the tax department said New Zealand’s aging population could result in pressure to raise taxes to pay for health and pensions.

But it said the Government would need to take into account developments in other countries when considering company tax, which was cut from 30 per cent to 28 per cent in 2011, undercutting Australia’s 30 per cent rate.

“Tax changes in Australia should continue to be monitored as they can have important implications for New Zealand,” Inland Revenue said. “A particular focus will be Australia’s White Paper due out at the end of 2015.

“If, for example, there were a substantial reduction in the Australian company tax rate, the question of whether New Zealand should follow suit would arise,” it said.

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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 »

Using tax cuts to revive the economy – How the poms see NZ

The opposition likes to talk down the economy and the government, yet New Zealand has recovered faster than the rest of the world from the global financial crisis, without the need to slash and burn.

Our economy is the envy of the world.

Even the Poms see that:

In New Zealand, John Key’s National Party romped home to victory on a platform of cutting taxes and balancing the budget, trouncing a Labour opposition that promised to put up taxes. Slashing the top rate of tax has revived the economy, and been rewarded with electoral success as well. True, there are lots of differences between New Zealand and this country. And yet the truth is, there are a fair few similarities as well – and if tax cuts can work there, they can work here.

For a small place a long way from anywhere, New Zealand has a fine history of leading the way with radical experiments in economics. While we were battling over Thatcherism, and the Americans were debating Reagan-omics, the Kiwis had “Rogernomics”, created by the Labour finance minister Roger Douglas. What had been a very 1970s, state-dominated mixed economy was swiftly transformed under Douglas into a laboratory for free market ideas. Financial markets were deregulated, the money supply was brought under tight control, the currency was floated, and industries were privatised. It was a mix that was to become orthodoxy by the 1990s, but Douglas was implementing it while our Labour Party was still planning to nationalise the top 100 companies.

Now it is doing it again – except this time without any encouragement from the US or the UK. Ever since the financial crash of 2008, even centre-Right governments have followed a very narrow path, buying into high taxes, and near-zero interest rates, and allowing budget deficits to balloon, even when financed by printed money, to keep the economy afloat. No one has strayed far from the orthodoxy. Except, that is, New Zealand.

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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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When you pay more tax under a Labour government, you will merely be returning what was theirs in the first place

Jamie Whyte draws attention to something about New Zealanders:  that we’re in some kind of hostage situation with our governments, and that we are definitely suffering from Stockholm Syndrome.

I was interviewed on Radio NZ’s Morning Report by Guyon Espiner. He asked why ACT wanted to give money to well off New Zealanders. I replied that we were giving them nothing. On the contrary, we were planning to take 24% of their incomes from them.

Espiner apparently believes that all income really belongs to the state, and that any it allows you to keep is its gift to you. When you are taxed at 33%, you should not see this as having something taken from you; you should see the 67% that you keep as a gift from the government. How else could Espiner think that a government that reduces tax rates has thereby given people money?

It is fortunate that a man with such ideas is only a journalist, you may think. Alas, some of our most important politicians agree with Espiner. David Cunliffe yesterday announced Labour’s plan to increase the top rate of income tax. According to the Herald, Cunliffe said the tax hikes would mean wealthier New Zealanders being asked to “return a small part of the very large tax cuts they received from the current Government”.

Those successive years of Helen Clark have left a foul stain on the nation’s psyche as its ‘children’ keep looking at the government to take care of it.   Read more »