Comrade Morgan wants rich pricks to cough up even more tax

There is only really one thing I agree with Gareth Morgan on…death to cats.

As for everything else, the man is a commie and a lunatic to boot….like his plans to tax people even more.

Economist Gareth Morgan believes New Zealand could be missing out on up to 25 percent of total income tax because the rich aren’t paying their fair share.

Morgan also told The Nation it is possible to get global corporations like Apple and Facebook to pay more tax on what they earn here.

The Government collects about $30 billion per year in income tax, but Mr Morgan says that take could be much bigger. The figures come from a soon-to-be-published report from the Morgan Foundation.

Dr Morgan says the report on New Zealand’s current tax system shows that the burden is falling on middle- and working-class families.

“There’s no free lunch here. If the rich aren’t paying their fair share, someone else has to pay more than they otherwise need to,” he says.

There he is with this “fair share” nonsense. The top 15% of taxpayers pay 75% of the tax…he’s right, they aren’t paying their fair share…they are paying far more than their fair share. Time for the bludgers to start paying their fair share.

Dr Morgan proposes a tax on equity to level the playing field, meaning people could be taxed for owning a house or even an expensive car. His example is a house worth $500,000, which would attract a tax of $6000 a year.

But that idea has been criticised as being too broad.

“If you’re going to tax Auckland homeowners, with a house value of about $1 million, why would you also tax homeowners in Whakatane or Gisborne or Hastings at the same rate, when they’re not making as much money?” says First Union communications manager Morgan Godfrey.

Adding to the tax imbalance are the global corporations such as Google and Facebook paying comparatively low tax.

A recent New Zealand Herald investigation found a group of foreign companies with $10 billion in New Zealand sales paid just $1.8 million in tax.

“They’re transferring their profits to other jurisdictions who are then able to transfer them to a third jurisdiction, which is a tax haven,” says Dr Morgan.

Good point about the Herald investigation…in their case they simply didn’t pay $68 million in taxes…dodging them completely. They left that out of Matt Nippert’s report though…strangely.

The problem with unreconstituted commies like Gareth Morgan is that they’ve never met a tax they didn’t want to implement.

 

– Newshub

 

 


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  • dumbshit

    Not a mention, that the beaurocracy could ease their snouts out of the trough a little, which would have the same effect. Also, is there still a voluntary tax fund, available to his ilk, that they at least could pay “their fair share”!

  • Boondecker

    It’s funny how some people become ‘champagne socialists’ once they’ve got a fair few bob in their bank accounts. Old Gareth is definitely a good example. Personally, I stopped taking him seriously years ago.

    • Woody

      You used to take him seriously? Really?
      I have always thought he was a righteous opinionated git, now he is someone who really does fit the term “Rich Prick”

    • They used to use him on ZB for economic predictions, you could put money on just about every one being wrong, since then he has just become more of a joke and should really have learned by now to keep his mouth shut.

      • BG

        He and Bernard hicky are still awaiting the complete slump in property that they have been predicting for the last 10+ years. A bit like saying that Wales will beat the All Blacks and when they do (in 50 years time) say ‘see I told you so’

        • waldopepper

          yes, the broken clock that is gareth morgan will be right at some point im sure.

  • Curly1952

    Some one needs to ask Morgan how his money is invested. I could almost bet that it will be invested through trusts to minimise his tax. If he were genuine he would leave all his assets in his own name and let the market deduct its fair and correct tax from him. Do as I say not as I do huh?

  • MrHippo

    One way to test this theory would be the ‘tax based voting system’… You gets one vote per tax dollar paid…

    • Brian Smaller

      Perhaps a vote per net tax dollar paid would be fairer. Plenty of people get more in subsidies than they pay in tax.

  • BR

    Hey Gareth, if you are reading this: just write out the cheque.

    Bill.

  • Woody

    I can see how the conversations go at his meetings with his accountants.
    Accountant “Gareth, Sir, we can claim this item as an expense”
    Gareth “No, no, no, we must maximise the tax we pay to ensure we are paying our fair share”
    Accountant “We could perhaps ensure you pay tax at the applicable rate on turnover then”
    Gareth ” Go for it, that is the fair way, a Little politician assures me that is the way to go”
    Accountant “Ok boss, but would you mind paying my account in cash and in advance”

    • jaundiced

      Or…
      Gareth. As a rich person, I don’t believe I am paying enough tax. Just as its not against the law to minimise my taxes, there’s nothing stopping me from paying what I believe I should.
      Can you write an additional cheque for a few million and send it to the IRD please.

  • Big_Al

    Seeing the term “Rich Pricks” thrown around so freely these days really annoys me. It usually comes from the lefties and the troughers who are jealous of anyone who has worked hard and saved to enable them to enjoy a nice home and car and perhaps a beach bach. Good on them, i say as it is these “Rich Pricks” that are paying the huge taxes to support the useless bludgers and many with businesses that provide employment. I am just middle of the road myself but always admire anyone who is successful as i know, in most cases, they have worked hard for it. As for Gareth Moron Morgan, he knows what he can do with his suggestion.

  • Ghost

    I have always wondered what the percent value is of “fair share” . Is there an actual figure that is proven to be a fair share, do all tax payers share in this fairness? Or is it utopian double speak for creating an environment of envy and hate.

    (No need to explain, I know the answer to this question)

  • kayaker

    Gareth, Mr Morgan – when can we expect you to table your financial and tax records going back at least seven years? Put your money where your mouth is, so to speak.

  • sheppy

    A tax of several thousand per year on all Auckland dwellers either by way of direct taxation, or by higher rent due to rent increases to offset the tax – genius!
    Will the last person to leave Auckland for Aussie please remember to turn out the lights.
    What an idiot!

    • Crowgirl

      We already have the council gouging us based on property value so this idea would go down like a cup of cold sick.
      Perhaps lefties want to alienate all of Auckland too. It does have the most number of voters after all. Let’s see how low that vote can go – I double dare Labour to try and implement this.

  • Mags

    The imputation credit system has eliminated the double taxation of companies. That’s been around for years.

    • Doc45

      Agreed but it doesn’t eliminate the issue completely.

      • Mags

        How do you mean? I know that it doesn’t work well if I invest in overseas countries. Eg: franking credits in Australia. (Which is their system of imputation credits).
        It does get a bit mucky when the person receiving the imputation credits doesn’t earn enough income (as they aren’t refunded. Is that what you ar meaning or am I off track?

        • Doc45

          Sorry Mags. Been away all day. Yes, unless we have a double tax agreement and not all of them work well – we get stung on corporate and personal tax on divi’s on stock in some countries..

  • Huia

    Is this man setting himself up as the next Labour leader?
    Wanting to tax people because they have a property worth $500 thousand, is ludicrous, they probably have their life savings sunk into the property and are not rich pricks but dammed hard working people.
    I makes me annoyed when a supercilious rich prick comes up with ideas on how to tax the less wealthy when he is sitting on a fortune himself.
    The media and the left make it quite clear how much they hate the wealthy and yet they run to Morgan for his every view.
    I think they may have forgotten he is one of the dreaded rich pricks.
    Our property is worth a good amount so from one rich prick to another, why don’t you button it Mr Morgan and take another bike ride to yet another exotic part of the world and keep your beak out of politics.

    • SlightlyStrange

      And a fortune he DIDNT make for himself, rather he got off investing in his son. Sigh.

    • Mags

      In a recent conversation there was a discussion that the next labour leader might be Steve Maharey. He’s giving up his Vice Chancellor job at Massey University at the end of the year. A downward step I would have thought so maybe not.

  • idbkiwi

    Gareth Morgan divorced reality some years ago.

    It may have been the years spent bringing up his family in a broken-down house bus parked up at the back of a property in Newtown, one of Wellington’s poorer suburbs, while he toiled over his unbeatable get-rich-quick scheme; he was going to beat the TAB, yesirrree! His horsey endeavour was an also-ran in racing terms, it came last, it was a dismal failure. Who would’ve have thunk it?

    Since then fact and fantasy have freely mixed in his utterances, but for his benefit the graph below was published a couple of years ago by David Farrar, I’m not sure if there’s a more up-to-date version, regardless of which I doubt the statistics have changed very much at all…

    • SlightlyStrange

      Just to be sure I’m reading right, the net tax paid is the gross tax paid – transfers rec’d? Interesting that because there are more in the 150k+ bracket, they pay so much more of the tax. Would be interesting to see that extended out to household incomes up to 200k.
      You know Gareth would look at that bottom row and say “they shouldn’t get getting ANYTHING back”.

      • idbkiwi

        You are correct SS. This is Bill English, quoted when the figures were developed: “Hon BILL ENGLISH: Our tax and transfer system is
        highly redistributive, and the number of people paying income tax is surprisingly small. The lowest-income 43 percent of households currently
        receive more in income support than they pay in income tax. The 1.3
        million households with incomes under $110,000 a year collectively pay
        no net tax—that is, their total income support payments match their
        combined income tax. The top 10 percent of households contribute over 70
        percent of income tax, net of transfers—over 70 percent of income tax,
        net of transfers. This system is highly redistributive and we believe it
        is fair.”

  • Aucky

    So Morgan proposes a tax on houses valued over $500,000 which cover most bog-standard two bedroom home units in Auckland much favoured by landlords as rentals. A tax of $6000 would equate to a rent rise of $120 per week for tenants. That should work really well Gareth.

    • SlightlyStrange

      You know he wont have thought of that.
      Because those awful landlords are meant to take the hit themselves, dontcha know?

  • OneTrack

    He is saying that, once I have saved up enough money to take out a massive loan and buy a house worth $500,000 in Eketahuna, he is then going to slam me with an immediate extra $6K per annum for being a rich prick ™, even though the bank effectively owns the house?

    I guess it all makes sense if you support Communism. Stick to your cats Gareth.

    • -D

      One Track…I think the reason he uses the term “equity” is that if you had a big loan it would be deducted from the market value of the house for his tax purpose.

      The idea still sucks though.

      • OneTrack

        I missed the equity bit ( not really taking the idea seriously ) but that also means if an investor buys a house for rental with a 100% , interest only loan, he won’t have to pay any of Gareth’s tax because his equity will be close to 0.

        And it raises the question somebody else brought up – is the bank then going to be taxed for the portion of the house they own. And, if not, why not.

        This just gets better and better.

      • johcar

        Equity does not equal liquid cash. The guy is an idiot. And his idea would encourage people to borrow heavily to minimise their “equity”…

  • Christie

    What absolute madness. Property prices will drop like a lead balloon. I accept the inevitability of a capital gains tax here, but it will be on realised gains. A basic principle of the tax system is that people pay tax on money they have received – not on an inflating property price over which they have no control.

  • RightofSingapore

    I wish that bored rich pontificating old windbag would stop sounding like a socialist. He seems to be saying “I got my wealth, now I will push policies to keep others back from succeeding” he should butt out and go revel in North Korea again since he likes that place so much. Maybe he could go to some other loser country and tell us how they do things better than NZ?

  • MaryLou

    Listening to him on The Nation now. Good lord, what a nightmare. Tax the house, and apparently there are too many rich people in the country now for the government to do anything about it, because…. the voters wouldn’t like it.

    I really think he needs to define what he classes as “rich”.

    • Old Dig

      Anyone who still has some money in their pocket after payday is classed as rich by parasites like Morgan.

      • SlightlyStrange

        And yet, he is one of the wealthier people in the country.
        Does HE pay his tax? Or is he working for free and living off the interest from his investment?

        • Old Dig

          Ah, but like all champagne socialists he ‘earned’ everything he has. It’s just everybody else that are scoundrels.

        • OneTrack

          Let’s see his tax return.

    • Mags

      I agree. People keep referring to middle class and working class. Everyone I know works and some of them are rich from their hard work. Historically this categorization in UK may have had meaning but does it still mean the same thing and does it mean anything in NZ? Confused.

      • MaryLou

        I don’t believe it has any meaning whatsoever in NZ. There are a few who inherit enough, and young enough that they’ll never work, but seriously – not many. We’re a nation of workers. The only differences being the types of work, and the willingness to work. In fact, the only way to build yourself is to work, and yes, that includes white collar work or blue. Meaningless jibberjabber…

  • SandP

    Is an idiot,was and idiot, always be an idiot. Left his Kiwisaver scheme after 4 years of no results just paying fees . The ultimate conman who think he is the Messiah.

  • Woody

    I have just taken the trouble to go over my companies books for the most recent period I have available YE 30 June 2015 and note that the tax my company paid compared to turnover is actually less as a percentage than the numbers quoted in the Herald investigative (oxymoron right there) report on the major corporations so i conclude that those numbers are possibly around a “fair” amount.

    What is willfully ignored and is the same in my case, is the other taxes which are paid as a result of being in business. As owners and recipients of payments from the company, we also pay our personal income tax. Staff are paid and I pass the PAYE on as I have to, ACC levies are paid, fuel taxes are paid, RUC is paid, the list goes on and on.

    We don’t owe IRD $68 mill, or even $68, in fact IRD owe our company over $10k which they seem rather reluctant to hand over (their numbers agree with ours so there is no dispute) but I guess we will get it eventually.

    • Mine it,Drill it,Sell it.

      You need to give Matt McCarten a call as you are obliviously paying to much tax.You wont have trouble finding him as you only need to call the leader of the Labour parties office and ask to speak with the tax evader.

      Don’t get put through to the Minister of Revenues office down the corridor as he would not want to be disturbed from his sleep.

  • localnews

    Gareth hasn’t explained why the government needs more than $30 billion a year. That sounds quite a lot to build roads and provide police, why not just work within that budget?
    It seems we have gone beyond any economic arguments for higher taxes, because every economist will tell you it chokes growth, and all the arguments are now whining about what is fair

    • MaryLou

      His new universal income, I’d imagine.

  • Ross15

    I haven’t seen any detail but just because someone has a $1 million house in Auckland doesn’t mean they have an extra $6000 floating around in their bank account to pay the “asset” tax. The person in this position had a house worth 300-400 K max less than 5-6 years ago but their income hasn’t gone up very much in that time.
    Unless there is a corresponding big reduction in income tax or even GST then the idea is stupid.

    • SlightlyStrange

      And I would be assuming they would intend for that to be an ANNUAL tax to boot.
      Plus, are you being taxed on “current” value, or what you paid for it? Because those two things could be significantly different, and “current” value is almost impossible to be certain of in the property market unless the house has just sold

      • OneTrack

        We could have a new Ministry of apparatchiks who have to value every house in the country, every year, so the government knows how much tax you “owe”.

  • Intrigued

    I’ve noticed this “it’s not fair” narrative taking centre stage lately in all the left’s rhetoric. It seems to me that because the regressives being “un-led” by Little can’t sell their policies as having any economic sense (ie they have none) and in the case of the foreign trusts they are not illegal, they are resorting to this “it’s not fair” or “it’s morally unfair” to push their socialist agenda. None of which will get traction with the hardworking voting majority in NZ who know that life isn’t always fair or about universal equality of income and economic status but about getting and achieving what you deserve after putting in the hard graft.
    Morgan has proved once again by his utterances and this stupid idea about taxing equity in homes, that he is intent on not only dumbing down the entire economy but also dumbing down the entire nation’s IQ.
    He gets far too much airtime for someone who made his money riding on the coat-tails of his enterprising and hardworking son.
    His stupid idea if implemented would relegate the majority of the nation to forever be tenants and only the very wealthy will have the cashflow to afford this stupid tax! The government will then have to pay for everything as the vast majority will have no assets to tax. A failing socialist state in the making!

    • WBC

      So true about relegating the majority to forever be tenants. Many landlords are taking a bit of a risk, this is natural, it is what those who want to get ahead do. But the acceptable margins of risk must be maintained, hence if I end up paying tax on my rental, it will just get passed on in the rent bill as are the other costs. It is a rental not a charity.
      Like Labour’s CGT, it will only serve to increase rents and decrease ownership.

  • XCIA

    So, if I have a house worth $500K, but have a mortgage with the bank for $250K effectively making the bank a part owner of my house, does that mean the bank gets pinged $3K in tax for its share?

  • seismac

    Just arranged for my —$502,000 house and my $300,000 crib , and $500,000 shares to be put into my blind trust
    I will now just rent from the trust and claim it as business expenses by paying for sex as the business simple Mr Morgie

  • Metricman

    Unbelievable bizarre left wing twittery, he is doing us all a favour by being so polarising.

  • Superman

    Gareth seems to be tired of the many people who pay no tax bearing the burden of the few who pay a lot of tax.

  • Grizz30

    We already do pay tax on our houses (Penny Bright the exception) in the form of rates. I am not being slugged twice for the same asset. If it came to that I would sellout, rent a small plot of land and go live in a tent.

  • WBC

    I guess it is sad but natural that our fairytale story writers give him airtime, they’ve given up on research and any intellectual rigour. Even the slightest little bit of questioning would have exposed the utter ludicrousness of Gareth’s plan to ensure that ownership of property becomes totally entrenched with the minority.
    No Tax is going to be paid by a Landlord at the end of the day, like any business, the costs must be passed on to the consumer or the business fails. Therefore Gareth is actually just campaigning to raise rental prices and deprive those who do not yet own a house the ability to save for one.

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