Why weren't Labour on to this earlier?

As Cactus Kate has pointed out repeatedly Farmers paying no tax. Obviously Stuart Nash has been reading up on this and decided to go after the real bludging classes of New Zealand.

The average dairy farmer is paying less tax than a couple on the pension – raising questions about whether the sector touted as the backbone of the economy is paying its fair share.

As the Government prepares one of the tightest Budgets in recent years, cutting into middle-class family benefits and KiwiSaver subsidies, new figures suggest those cuts will hit people who are also shouldering the greatest tax burden – wage and salary earners.

Inland Revenue Department figures provided to Labour revenue spokesman Stuart Nash show that, in the latest full year for which figures were available, the average tax paid by dairy farms was $1506 a year. The 17,244 registered as being in the dairy sector, including companies, trusts and individuals, paid only $26m in tax.

The figures also show that more than half – 9014 – reported a loss for the 2009 year and another 2635 reported trading income of between $1 and $20,000.

This is a major hit for an up and coming Labour MP. An issue that matters, and for follows of global politics a straight copy of the Uk Uncut protests that are railing against corporates dodging tax while the state sector is being cut. The Farming sector are really corporate bludgers. If it rains they want hand outs, if it snows the hands come out, when prices are low they cry poor and when prices are at a record high they structure their affairs to appear to be paupers. Meanwhile they fill our rivers with cowshit and expect to get water for free. These things matter and still Labour pursues helicopter trips and painting of historic buildings as their important issues. It is refreshing that Stuart Nash has stayed about the gutter and done something useful for a List MP.

This highlights one of the major problems for Labour. They have old battle scarred once were warriors like Mallard and Hodgson who are so far past their used by date they have been practically eaten away by maggots. Yet they are setting the strategy, talking about really dumb stuff like BMWs, painting and other irrelevant things. They have yet to get a hit on National on anything that really matters.

This must be intensely frustrating for the very competent up and comers like Nash, Roberston, Adern, Chauvel and Curran. Old timers associated with the failed policies of the Helen Clark regime are still around, and the stench of death pervades Goff, King, Mallard, Hodgson, Dalziel and Street.

Labour’s fortunes won’t improve until they clean out the front bench and put some competent new people in to replace the irrelevant old timers.

 


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  • jimbob

    Every business in NZ, which of course includes farmers, gets tax deductions on expenses relating to running that business. All over the western World it is the same. Why some dairy farmers pay so little tax is that their debt is extremerly high. A three million dollar loan at 8% would take $240 K per year in interest, which is tax deductable. But if interest rates were to rise, that farmer would be insovent in short order. This is a dead end road to go down, if you change the rules for business you are basically making every business in NZ insolvent.

  • jimmie

    Yeah a few more points to for ya Whale:

    The 2009 season saw a 35% decrease in gross payout from Fonterra. (Payout dropped from $7.89 to $5.25/kg)
    Also 2008 was a peak for dairy farm prices – as pointed out above many farmers foolishly booked up a heap of debt leading to mega interest to pay.
    Farmers aren’t any different to any business – Gross Income minus expenses equal net profit.

    As for our personal sharemilking business:
    In 2010 we paid $29K in GST and around $50K in income tax.
    In 2011 we will pay something similar but the diffence between us and a lot of farmers is that we have little debt so our net profit is so much higher.

    I think this was a bit of a hysterical report to bring up as if farmers have special tax rules for them and them alone. Its a load of crap.

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