15% GST

[Mully]

agrees in principle, however there is somthing to be said for home ownership, we are infact encouraged to do so, individuals who work hard to gather lets say two rental properties cannot be likened to a commercial property investors, there has to be allowances made, not examples, blanket tax smothers

The way the system is set up at the moment, you're actually financially better off owning a rental and not your residence.

I know a bloke who has two rentals and rents the house he lives in. (He's probably not that happy about the new situation - I must ask him).

[Oscar]

I object to my taxes paying for bludger lifestyles.Both the unemployable and the 50% of property investors that pay no tax on their rental income.
And I don't suck on the taxpayer teat via Kiwisaver either

What about the 50% of NZ Families that pay no tax?

[sinned]

What about the 50% of NZ Families that pay no tax?

And the 10% who pay 44% of all personal tax - yes it needs some rebalancing

[freedom-wedge]

The way the system is set up at the moment, you're actually financially better off owning a rental and not your residence.

I know a bloke who has two rentals and rents the house he lives in. (He's probably not that happy about the new situation - I must ask him).

I see your point, however its ok for they in power to feather their own nest and creat new loophols for themselves. housing allowances etc and all that blubber from they who were snapped abusing it, they walked away better off in the end, after selling the public a truck load shit in laymans terms, they would of been hung for theft in Cromwells time, we encourage them to tax, infact we help them do it, instead of taking them to task, if you found out that the local dairy owner was dipping into your account, would you trust them ever again, even if they payed it back, sorry about the rant, its the truth and whos not telling it thats the problem in NZ. Non of these proposed changes will lessen the amount of people die,ing on our hospital waiting lists,

pedro

[mashman]

Non of these proposed changes will lessen the amount of people die,ing on our hospital waiting lists

probably categorised as population control. If you're too sick to work then you're no use in a financial economy!

[Oscar]

I see your point, however its ok for they in power to feather their own nest and creat new loophols for themselves. housing allowances etc and all that blubber from they who were snapped abusing it, they walked away better off in the end, after selling the public a truck load shit in laymans terms, they would of been hung for theft in Cromwells time, we encourage them to tax, infact we help them do it, instead of taking them to task, if you found out that the local dairy owner was dipping into your account, would you trust them ever again, even if they payed it back, sorry about the rant, its the truth and whos not telling it thats the problem in NZ. Non of these proposed changes will lessen the amount of people die,ing on our hospital waiting lists,

pedro

So do you have any examples of nest feathering or "loophol" creating or is this just the aliens communicating via your tin foil helmet?

[p.dath]

agrees in principle, however there is somthing to be said for home ownership, we are infact encouraged to do so, individuals who work hard to gather lets say two rental properties cannot be likened to a commercial property investors, there has to be allowances made, not examples, blanket tax smothers

pedro

Why should there not be the same encouragement to invest in businesses? I have nothing against rental investment - but the tax rules for one kind of investment should be the same as for the other.

[p.dath]

agrees in principle, however there is somthing to be said for home ownership, we are infact encouraged to do so, individuals who work hard to gather lets say two rental properties cannot be likened to a commercial property investors, there has to be allowances made, not examples, blanket tax smothers

pedro

What about the 50% of NZ Families that pay no tax?

I don't believe that 50% of families pay no tax at all.

Do they buy anything, anything at all? If so, they pay GST. That's why GST is good. It's simple, and almost impossible to avoid. Income tax on the other hand provides incentives for shift your income around to minimise what you pay. People who do cashies can easily avoid it.

[p.dath]

I see your point, however its ok for they in power to feather their own nest and creat new loophols for themselves. housing allowances etc and all that blubber from they who were snapped abusing it, they walked away better off in the end, after selling the public a truck load shit in laymans terms, they would of been hung for theft in Cromwells time, we encourage them to tax, infact we help them do it, instead of taking them to task, if you found out that the local dairy owner was dipping into your account, would you trust them ever again, even if they payed it back, sorry about the rant, its the truth and whos not telling it thats the problem in NZ. Non of these proposed changes will lessen the amount of people die,ing on our hospital waiting lists,

pedro

You do have the power of your vote ...

[Oscar]

I don't believe that 50% of families pay no tax at all.

Do they buy anything, anything at all? If so, they pay GST. That's why GST is good. It's simple, and almost impossible to avoid. Income tax on the other hand provides incentives for shift your income around to minimise what you pay. People who do cashies can easily avoid it.

My apologies - I should have said 50% of Families in NZ pay no income tax.
My problem with that is that some of these people are manipulating (family trusts etc) their incomes to qualify for "Working for Families". It is also inherently unfair in a day and age where having a family is a choice.

[kwaka_crasher]

or worked harder. Either way - its not hard to get out of the lower wage bracket. FFS my daughters B/F is on 50k in his 20's - has no formal education - just hard work.

I was on $55k in my mid-twenties... no hard work just formal education... and that was 15 years ago...

[Swoop]

do you people ever read the detail or do you simply take poor media commentary or opposition press releases.

They wouldn't lie to the public... surely!

Correction...Rich peoples wives spend more than poor peoples wives

Corrected correction: "Rich peoples wives spend more than poor peoples wives & husbands combined".

[Skyryder]

I think securing the next election is exactly what he is doing.

My thoughts too. I could get into a long diatribe on this but Key needs the Maori Party more than he needs ACT.

Labour via Shane Jones will make a serious effort to win Maori support. Neither of the Maori co-leaders are any =match for Jones.

I'm gonna stick my neck on this but I think Jones will be the make or break of Labour in the next election. It realy depends how much rope Goff and King give the man. With the Progressives having dual membership you may see more of Anderton in a supporting role for Labour more so than as an alternitive Party as they now stand. I've always said an Anderton/Jones leadership will blow Kkey and the Nats off the planet. Problem is not many in Labour see this and Labour does have a history of giving away elections.

Skyryder

[Miscreant]

Shit.

Are they looking at putting GST up?

Fuck, they kept that quiet - I hadn't heard a dicky bird about that.

Silly boy, of course I get it.
It's you who miss the point. You put me on ignore, yet respond to my posts with rep.
Just admit it sweetie, you find me irresistable don't ya.

I'm betting you ride a Honda, or wish you did.

[The Stranger:Me]

Rental income is taxable. However the profit from buying a rental and then selling it 10 years later for a higher price is not. And that is the issue, the income from the capital gain on the property has 0% tax. And so people say why should people doing this pay no tax.

The other big issue is it attracts a lot of people into the market because of this 0% taxation. Suddenly a lot of investment is done in housing and not done in the share market, private companies, mum and dad businesses, and the like.

Residential housing going up in value does nothing for the country. Enterprises and mum and dad business improve the economy of NZ. They employ people. They pay tax. They may be able to export products, which really improves the NZ economy.

A lot of the recession we have now is purely related to the fact that NZ has a distorted balance sheet. Far too much investment in domestic property (which generates no income for NZ), and not enough in business.

Ah, do you own a business, shares or a rental property?
You do realise that the profit from buying shares and selling them 10yrs later is not taxable either.
Or your mom and pop business either.

35% of our housing stock is rental. Who's going to supply the housing for the me now generation?
As I've previously noted, you take away the investor's return on investment, you know where they'll be seeking to recover it don't you? That's right, from those that can least afford it.

It's not the 0% interest capital gains tax that attracts people into the market, this is available to business and share owners too, it's the ease with which you can borrow (among other things)
Can you borrow 100% to fund a business? Could you afford to? The banks know damn well that business failure rates are HUGE, this is reflected in their lending.

Mum and pop can go out and get a rental or 2 with $0 deposit easy enough with minimal effort, low risk and a fraction of the compliance costs of running a business.
How many shares or businesses could they purchase with $0 dollars? How would these $0 dollar businesses help NZ?

Far more of our recession is related to a recession that started in the states, actually I think NZ has held up tremendously well compared to many other countries, perhaps because of the heavy investment in domestic property - which doesn't go broke and put people out of work.

Please stop regurgitating the petty jealousies of others and think for yourself.