Book Review ‘Own Your Future’ chapter two: Tax


Points made about Tax in the first chapter included:

  • Tax money shouldn’t be used to buy support ie interest-free student loans, family income package and 36 million to Team New Zealand.
  • 21 billion dollars of surpluses are predicted in the four years from budget 2017
  • 90% of this revenue comes from taxation
  • A surplus is good because it means that the government are good managers of the economy
  • A surplus is bad because it means that the government is taking more money from the taxpayer than it needs.
  • Human nature assigns different priorities to how money is spent depending on whether it is our money or someone else’s money.

” If your boss says she is shouting anything on the menu at lunch, you might decide it’s finally time to try the lobster.”

  • Government departments have wasted taxpayer’s money because of this difference in priorities. Some examples are hair straighteners in bathrooms, a $147,000 LED screen in reception, a $67,000 stone sign on the street outside.

That LED screen alone “has cost all the tax that will be paid by one worker on the average wage for ten years.”

  • Success is penalised to support failure

“This year ACT easily found $1.1 Billion in “corporate welfare” payments or subsidies to specific businesses that the government is trying to promote or prop up.”

  • We need to stop taking money from profitable businesses to give to unprofitable ones and reduce company tax on all businesses.
  • By Helen Clark’s ninth year as PM, 15% of all taxpayers were paying the “tax on the rich” which was three times as many as originally intended (5%) and included professions like long-serving teachers and the police.
  • Because of fiscal creep, it is a myth that National have given us lower taxes

” we estimate the Government took $2.8 Billion extra between 2010 and 2016 thanks to bracket creep.”

“The higher the taxes, the less incentive people have to work and invest.”

  • Simplified taxes reduce waste because it becomes less profitable to avoid tax
  • Benefits like “Working for families” give you something for doing nothing and punish you for working

Act’s solution:

  • Act would give the surplus back to the people who earned it
  • The only fair response to taking too much of taxpayers money is to give it back to them.

” Without cutting any spending except corporate welfare we would cut the 10.5% rate to 10%, the 17.5% rate to 15%, and the 33% and 30% rates to 25%. We’d also cut the company tax rate to 25%

What Act will do immediately if they hold the balance of power:

  • Act would ensure that no one earning five figures is paying the top tax rate ( the current top tax rate kicks in at $70,000)

” If you are middle class you should pay middle class tax rates, not an envy tax.”

Get your copy of Own Your Future

 


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