PAYE

PAYE for business, an idea worth exploring

Todd McClay has announced he is looking at the possibility of PAYE for business.

Long awaited tax modernisation proposals were unveiled today by Revenue Minister Todd McClay.

A form of business PAYE, along with greater use of withholding taxes to deal with fringe benefits, interest and other investment income has been flagged.

The government is also looking at reversing the move, made in 1998, to allow most New Zealanders to no longer file tax returns.

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He shouldn’t really be talking about taxes at all

Matt McCarten blurts out another anti-capitalist rant in today’s Herald on Sunday. But he finishes up with some breathtaking hypocrisy:

Twice as many children grow up in poor families now than in the 1970s and 80s, so the disparity will get even worse.

The solution to the poverty gap is for the state to raise enough taxes to fund schools, hospitals and housing. Then have economic policies and industrial laws that aim to create high-waged jobs.

Instead, our economic model requires the opposite. It seems it’s now a crime for a worker to have well-paid full-time job. Just look at the waterfront.

The solution for the problem of not enough taxes is for people like Matt McCarten to actually pay their taxes rather than steal employees PAYE. If people like Matt McCarten actually paid their taxes that were due I think we would find we would be a whole lot better off.

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Matt McCarten on Labour’s savings plan

Matt McCarten isn’t happy with Labours super plans:

Labour’s gamble on its unpredictable superannuation policy gives it media domination for the next few days, as political pundits praise Goff’s seriousness and responsibility on fiscal management. It hopes this will put Key on the back foot and open up a fruitful line of attack for Labour for the whole campaign.

But here’s the thing: making workers stay in their jobs two years longer and forcing them to hand over a percentage of their wages to a private company to invest into large capitalist corporations for a fee is not a pro-worker policy – no matter how it’s dressed up.

What happens when these companies go bust, like many have in the United States and Europe? People over there have had their entire savings wiped out through incompetence and, in some cases, downright theft.

The government doesn’t guarantee them and these people have been left penniless.

If both major parties were honest, they would admit the actual purpose of these KiwiSaver schemes is to privatise government superannuation by stealth.

Matt might have a problem with that, I certainly don’t. Labour will though:

In proposing that KiwiSaver becomes compulsory, the Labour Party is forcing workers to pay an additional flat tax towards their retirement.

Pay your tax then we will listen to you

Matt McCarten is whining that compulsory Kiwisaver is just an extra tax on workers, one that should be paid out of PAYE:

Raising the employers’ contribution by half a per cent each year, until it reaches 7 per cent, just means that most employers will deduct that amount from any annual wage increase offer they would normally make.

Effectively, most workers will be paying the whole lot. This is for a retirement fund that, up until now, their PAYE tax has covered.

Politicians pretending that raising the retirement age is a sacrifice we are all going to have to make are being disingenuous.

Matt knows all about PAYE, the organisations he runs simply don’t pay it. Then he has the audacity to suggest that retirement should be funded out of something he doesn’t even pay.

Maybe Matt would be a bit more believable if his organisations actually paid their PAYE. I’m surprised he even mentioned it in his column.