Tax cuts

[Lou Girardin]

I've just realised why there's a sudden clamour for tax cuts.
It's to pay for the increased mortage costs for those people who enjoyed our "economic boom" now that it's slipping away.
Economic boom being rising house values.

[Motu]

Real Eastate Agents have a lot to answer for - this whole economy is running on the back of inflated house prices.Oh goody,my ex state rental is now worth half a million dollars,I'll go down to AMPS and get a new Rocket III,the bank will just put it on the mortage.

My sister in law has just found out the bank now owns her house....and the rental she bought on it's inflated value.OK,she is stupid to let that happen....but there are a lot of stupid people out there.

[vifferman]

Real Eastate Agents have a lot to answer for.
Feckin parasites the lot of them, like almost all agents. :mad:
When I'm God [Cue neg rep points from Zed], they'll be among the first up against the wall. :yes:

[Eurodave]

I see now Trade Me is listing houses ,excellant ,goodbye land agent blood suckers, ABOUT BLOODY TIME!!!! :motu:

[TwoSeven]

Tax cuts are good for the reason that they raise the amount of discretionary spending (which then gets taxed with GST). In otherwords you pay your tax when you spend your money, but at least you get to choose what you spend it on.

Its better than being in my position where I pay so much tax, I'm literally working 1/3 of the year for nothing.

However, I have no issue with paying tax. Don't mind the bludger on the dole, or the chap thats in the library, or the sports person funded by the government or the new road round the corner thats finally been fixed, or the younguns getting the flu jab.

What I do mind very very much is deadweight caused by government inefficiency. Labour seems to be generating it hand over fist.

New zealands monetry policy is controlled by the reserve bank based on money supply, so what policies the government has don't actually have an impact. About all the government will do is borrow from its current account at the reserve bank in the same way that local banks do. They have a ratio of debt repayments to spending just like banks do and work pretty much the same way.

If you want to make life easier for yourself, save money, then the local banks wont have to borrow so much from their current accounts which will easy money supply and allow the reserve bank to lower the OCR (official cash rate) which makes local goods cheaper.

[MSTRS]

If you want to make life easier for yourself, save money, then the local banks wont have to borrow so much from their current accounts which will easy money supply and allow the reserve bank to lower the OCR (official cash rate) which makes local goods cheaper.
Oh goody - in 2007 was it? when I get my 67c per week taxcut, THEN I'll be able to save some. Ooooops that's right - I selfemployed, no cut for me I dare say. Oh well - I'll just increase my prices so I'll have some to save. Ooooops - that will fuel inflation. DAMNED if I do & DAMNED if I don't :mad:

[Brian d marge]

Here in Japan, our tax is 5 percent goods and service ,,,,and a comunity tax of 1.4 percent ...A Year

Our Insurance bill last year was 9.4 percent ...

NZ is fiscally responsable , but that tax does hurt a bit !

Stephen

[Big Dave]

I could sure do with some tax cuts - I got a 'provisional tax' bill yesterday.
Tax on money i haven't earned yet!?! Yeah right.

[Lou Girardin]

I could sure do with some tax cuts - I got a 'provisional tax' bill yesterday.
Tax on money i haven't earned yet!?! Yeah right.

That's the price you pay for being a capitalist running dog. :devil2:

[idb]

I could sure do with some tax cuts - I got a 'provisional tax' bill yesterday.
Tax on money i haven't earned yet!?! Yeah right.
And IRD don't pay interest or penalties if the assessed amount was too high.

[Ixion]

And IRD don't pay interest or penalties if the assessed amount was too high.
Sure do charge them if you estimate too low though!

[TwoSeven]

Oh goody - in 2007 was it? when I get my 67c per week taxcut, THEN I'll be able to save some. Ooooops that's right - I selfemployed, no cut for me I dare say. Oh well - I'll just increase my prices so I'll have some to save. Ooooops - that will fuel inflation. DAMNED if I do & DAMNED if I don't :mad:

I dont see the point of your argument anyhow. If you are self employed, your not on the save tax regime as the majority of workers. You'll only be paying tax on the wages you pay yourself, which as many self employed do - is less than 60,000 per year.

[TwoSeven]

Here in Japan, our tax is 5 percent goods and service ,,,,and a comunity tax of 1.4 percent ...A Year

Our Insurance bill last year was 9.4 percent ...

NZ is fiscally responsable , but that tax does hurt a bit !

Stephen

Putting this into perspective, Japan has no social policy. It works on a free market economy you you have to provide your own services. If you cant afford to do that, then you lose out. Most asian economies work on that model.

In New Zealand we choose to have social policy and support for people - we voted for the 1948 human rights convention which about 50 other countries also subscribe to. In this convention are the requirements to provide social security, pensions, support for the poor people and people that cant support themselves (such as disabled).

We also vote for relatively good infrastructure (we tend to vote out governments that fail in this respect - hence its an issue in the current election).

So, as a country, we choose to pay more tax to provide services that make life for us easier to live.

In regards to japan, hong kong etc. Remeber that there are people in worse off economic situations that would kill to be poor in a country like japan or hong kong and Asians do not come from a culture where it is acceptable to ask for basic standards and human rights. So those countries are reflecting one of ignorance is social policy and desire from even poorer people to take whats given. Remember that NZ does not allow those poor people to come here (as NZrs see them as a burdon to society), so in that respect asian countries actually have a better social policy.

[Hitcher]

Real estate agents? Overpaid, lazy, disingenuous liars, extortionists and con artists. And those are the good ones. Their whole "profession" is all about them, not about their "clients". And they have the gall to think that Location, Location gives them bad press, when it probably shows them in too good a light. If anybody wants to line them up against the wall, can I please be in the firing squad?

[MSTRS]

I dont see the point of your argument
My point is that the majority of wage earners do not have a lot left over for a meaningful savings account, the taxcut :rofl: :puke: will not make a blind bit of difference, selfemployed peoples probably won't see any benefit to them from the so-called cuts, large savings accounts *may* reduce inflation but I'm not alone in not having one and if I put my prices up (to pay myself more) then that would only fuel inflation. Seems pretty simple to me.

[Hitcher]

And taxes... Never forget that PAYE is the thin edge of a very fat tax wedge. Remember GST, petrol tax, excise duty on tobacco and alcohol, rates, user charges, school fees, medical costs, yada yada yada. Tax cuts? The Government giveth, the Government taketh away. Blessed be the Government.

[SPman]

Real estate agents? Overpaid, lazy, disingenuous liars, extortionists and con artists. And those are the good ones. Their whole "profession" is all about them, not about their "clients". And they have the gall to think that Location, Location gives them bad press, when it probably shows them in too good a light. If anybody wants to line them up against the wall, can I please be in the firing squad?
Flattery will get you nowhere!

[SPman]

And taxes... Never forget that PAYE is the thin edge of a very fat tax wedge. Remember GST, petrol tax, excise duty on tobacco and alcohol, rates, user charges, school fees, medical costs, yada yada yada. Tax cuts? The Government giveth, the Government taketh away. Blessed be the Government.
No, the Govt taketh, the govt taketh more!
ACCwould be the kings of taketh, though, wouldn't they?

[Eurodave]

No, the Govt taketh, the govt taketh more!
ACCwould be the kings of taketh, though, wouldn't they?

Hell yeah!!!, these pricks are creaming it, with ACC levy on EVERY vehicle you own, although you can only drive ONE at a time!!!! & then ACC levy if your self employed on top of that as well.!!! Why the hell isnt there ONE levy just on your drivers licence???? :weird:

[Hitcher]

Flattery will get you nowhere!
And philately should be stamped out...

[Jackrat]

Bought my house on "Trade me"
Reckon we payed $40,000 less than we would have if an Agent had been involved.
Know nothing about Taxes,land values ect ect,but I know we done OK!!!

[TwoSeven]

My point is that the majority of wage earners do not have a lot left over for a meaningful savings account, the taxcut :rofl: :puke: will not make a blind bit of difference, selfemployed peoples probably won't see any benefit to them from the so-called cuts, large savings accounts *may* reduce inflation but I'm not alone in not having one and if I put my prices up (to pay myself more) then that would only fuel inflation. Seems pretty simple to me.

No-one is taking the labour tax cut seriously - thats why they are copping a huge amount of flack about it. It wasnt really a tax cut, it was just manipulation of funds. Remember that labours basic policy model works on the principle that they cant give unless they take from somewhere else first. They dont have an efficient enough government to do anything else.

Your business should be paying the corporate rate of tax, not the consumer rate. That means in order for you to get tax relief you need the 'corporate' tax level to come down. That means your business will take more 'profit' which means you can pay yourself more wages - which the government will then take in taxes :)

The labour govnt. has never said that it will cut business taxes - only national is doing that (the assumed intention is from 33% to 30%).

The problem with labour is that their spending has been increasing over the six years they have been in power (45% according to the debate the other night) which means they are increasing spending about 7.5% per annum. Thats why inflation is increasing - simply they are borrowing too much from their current account (examine the current account figures relased the other day and you will see - they are the worst ever). As I said earlier - borrowing from the current account increases the base interest rate.

On the otherhand, national want to decrease government spending (reduce costs) by increasing efficiency - that means there is leeway to reduce tax. However, the mechanism they are using is by turning the 'amount' of dollars saved into a year on year percentage which is what the final tax rate will be calculated off (and why they are having two tax drops). If we take what they are hinting at to be true, your business will be better off by 3% per-annum as the business rate drops and your wages (over the 33k threashold) will be better off by a 3% per annum on the personal tax drop. So you win on both principles.

Note that currently the average tax take is about 48% per person when you factor anything in. Personally, I cant see how anyone can justify this level.

[TwoSeven]

Hell yeah!!!, these pricks are creaming it, with ACC levy on EVERY vehicle you own, although you can only drive ONE at a time!!!! & then ACC levy if your self employed on top of that as well.!!! Why the hell isnt there ONE levy just on your drivers licence???? :weird:

I understand petrol just went up again ACC levy.

[ajturbo]

I've just realised why there's a sudden clamour for tax cuts.
It's to pay for the increased mortage costs for those people who enjoyed our "economic boom" now that it's slipping away.
Economic boom being rising house values.

i am constantly being amazed at the things you think about durring the day...
:not: :not: :not:
some of the things are worth while, and some like this are...... well.... ummmm.. well it is a good thoery:motu:

and it is probbly not far from the truth, babyb and i were looking though the real estate books that you get in the mail .. and if you don't have 300k, don't even bother opening them!!!
now tell me how the hell do first home buyers get into a place around here????:whocares: